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Review problem on assigning receiving costs to the cameras

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Question: Witness Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:

Product Machine Hours Setups Receiving Orders Packing Orders
35mm 12,000 200 300 500
Digital 12,000 450 1,200 2,500
Costs $70,000 $50,000 $10,000 $30,000

Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm cameras.

a.$1,802

b.$1,605

c.$4,007

d.$1,209

e.$2,001

Reference no: EM131744479

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