Reference no: EM132898859

Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:

                                          Vaquero             Vaquera
Cutting hours                    4,000              5,400
Assembly hours                    2,850             4,650
Inspection hours                      945            2,430
Rework hours                          150              450

The following activity data have been collected:

Cutting $225,600
Assembling 300,000
Inspecting 67,500
Reworking 45,000

Required:

Problem 1: Calculate the activity rates that would be used to assign costs to each product.