The Canine Company has total estimated factory overhead for the year of $2,400,000,divided into four activities: fabrication,$1,200,000; assembly,$480,000; setup,$400,000; and materials handling,$320,000.Canine manufactures two products,Standard Crates and Deluxe Crates.The activity-base usage quantities for each product by each activity are as follows:
Each product is budgeted for 20,000 units of production for the year.
Determine (a)the activity rates for each activity and (b)the factory overhead cost per unit for each product using activity-based costing.
Definitions:
Unfreezing
The process within change management that involves overcoming inertia and dismantling the existing "mindset" to overcome resistance to change.
Changing
The process or act of making something different, often in the context of improvement or adaptation.
Refreezing
The process of stabilizing a group or organization after a change has occurred, ensuring that the changes made are permanent and integrated into the norm.
Force-coercion Strategy
A change strategy that pursues change through formal authority and/or the use of rewards or punishments.
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