Rhapsody Corporation Manufactures Several Different Products and Uses an Activity-Based

question 37

Essay

Rhapsody Corporation manufactures several different products and uses an activity-based costing system.Information from its system for the year for all products follows:
$$\begin{array} { | l | l | r | l | } \hline \text { Activity cast poul } & { \text { Tatal cast } } && { \text { Tatal activity } } \\\hline \text { Assembly } & \$ 120,000 & 12,000 & \text { machine-haurs } \\\hline \text { Pracessing arders } & \$ 80,750 & 4,750 & \text { arders } \\\hline \text { Inspection } & \$ 22,880 & 1,760 & \text { inspection-hours } \\\hline\end{array}$$ The annual production and sales of one of its products,the Sizzler,are 1,000 units.The following data relate to the production and sales of Sizzlers in the most recent year:
$$\begin{array} { | l | r | } \hline \text { Annual machine hours } & 750 \\\hline \text { Annual number of orders } & 180 \\\hline \text { Annual number of inspections } & 350 \\\hline \text { Direct materials cost per unit } & \$ 125.00 \\\hline \text { Direct labor cost per unit } & \$ 67.00 \\\hline\end{array}$$ Required:
1.Calculate the activity cost pool rates for each of the three activity cost pools listed.
2.Calculate the average cost of one Sizzler.

---

Definitions:

Workers' Compensation

An insurance program that provides benefits to employees who suffer job-related injuries or illnesses.

Mandatory Laws

Regulations that are legally required to be followed, often implying penalties for non-compliance.

Louisiana

A state in the southern region of the United States, known for its diverse culture, Mardi Gras festival, and as the birthplace of jazz.

Verified

Pertains to being confirmed as true, accurate, or authentic by evidence or authority.