Homework SourseMagnolia Company has identified seven activities as part of
Magnolia Company has identified seven activities as part of its manufacturing process and chosen corresponding activity drivers for each activity. The chart below lists the total cost of each activity, the amount of activity driver used for each of Magnolia\'s two products, the activity rate, and the activity cost assigned to each product. Fill in the blanks below: Driver Usage Activity Cost: Prod. 1 Activity Cost: Prod. 2 Activity Design Preparation$ 49,600 Labor hours Machining 142,290 Machine hours Finishing Inspection Packaging Shipping Cost Activity Driver Prod. 1 Prod. 2 Activity Rate 910 1,260 3,000 $26,040 Design time hour hour 27 /hour 46/batch 7 /unit 301 /order 24,000 $42,390 215320$ Batches Units Orders 4,550$ 7,070 60 $ 12,341 $ 13,566 Packages 83 /package 3,689
Solution
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| Design Activity | ||
| Total Cost | 26040 | |
| Total Activity Driver | 910+1260 | 2170 |
| Activity Rate | 26040/2170 | 12 |
| Activity Cost-Prod 1 | 910*12 | 10920 |
| Activity Cost-Prod 2 | 1260*12 | 15120 |
| Preparation | ||
| Total Cost | 49600 | |
| Activity Cost-Prod 1 | 24000 | |
| Activity Cost-Prod 2 | 49600-24000 | 25600 |
| Activity Rate Prod | 24000/3000 | 8 |
| Activity Driver 2 | 25600/8 | 3200 |
| Machining | ||
| Total Cost | 142290 | |
| Activity Rate | 27 | |
| Total activity Driver | 142290/27 | 5270 |
| Activity Cost-Prod 1 | 42390 | |
| Activity Cost-Prod 2 | 142290-42390 | 99900 |
| Activity Driver 1 | 42390/27 | 1570 |
| Activity Driver 2 | 99900/27 | 3700 |
| Finishing | ||
| Total Activity Driver | 215+320 | 535 |
| Activity Rate | 46 | |
| Activity Cost-Prod 1 | 215*46 | 9890 |
| Activity Cost-Prod 2 | 320*46 | 14720 |
| Total Cost | 24610 | |
| Inspection | ||
| Activity Cost-Prod 1 | 4550 | |
| Activity Cost-Prod 2 | 7070 | |
| Total Cost | 11620 | |
| Activity Driver-1 | 4550/7 | 650 |
| Activity Driver-2 | 7070/7 | 1010 |
| Packaging | ||
| Activity Cost-Prod 1 | 12341 | |
| Activity Rate | 301 | |
| Activity Driver-1 | 12341/301 | 41 |
| Activity Cost Prod2 | 60*301 | 18060 |
| Total Cost | 12341+18060 | 30401 |
| Shipping | ||
| Total Cost | 13566 | |
| Activity Cost Prod-2 | 3689 | |
| Activity Cost Prod-1 | 13566-3689 | 9877 |
| Activity Rate | 9877/83 | 119 |
| Activity Driver-2 | 3689/119 | 31 |
