Adirondack corporation is estimating activity costs

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Adirondack Corporation is estimating activity costs associated with producing two different sized e-reader tablets. The indirect labor can be traced to three separate activity pools. The budgeted activity cost and activity base information, along with the estimated activity-base information, is provided below.  All work must be shown for credit.

 

Activity

Cost

 

Activity Base

 

Purchasing

$  300,000

Number of purchase orders

 

Materials handling

  500,000

Number of moves

 

Production

1,500,000

Machine hours

 

TOTAL                                        $2,300,000

 

 

Number of

Purchase

Orders

 

Number

of

Moves

 

 

Machine

Hours

 

Number

of

Units

 

7" tablet

4,000

1,400

2,000

2,000

 

10' tablet

4,000

  800

8,000

4,000

 

TOTALS

8,000

2,200

10,000

6,000

 

Reference no: EM13480235

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