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Compute the average manufacturing cost of each treadmill

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Question - Odd Squad Cat Corporation manufactures treadmills using and activity-based costing system. The following is available for August:

Activity Total Budgeted Cost Allocation Base Estimated Quantity of Allocation Base

Materials handling $9,064 Number of parts 6,400 parts

Machining $14,880 Machine hours 1,200 hours

Assembling $11,648 Number of parts 6,400 parts

Packaging $4,150 Number of finished units 200 units

Each treadmill consists of 32 parts and requires 6 hours of machine time to produce. The direct materials cost per treadmill is $245.

Compute the cost allocation rate for each of the four activities?

Compute the average manufacturing cost of each treadmill?

Reference no: EM131750467

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