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Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are...

Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by 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

Infantry

20,000

300

900

1,600

Special forces

20,000

100

100

800

Costs

$80,000

$24,000

$18,000

$30,000

Required:

  1. Calculate the total overhead assigned to each product by using only machine hours to calculate a plantwide rate.
  2. Calculate consumption ratios for each activity. (Round to two decimal places.)
  3. Calculate a rate for each activity by using the associated driver. (Round to two decimal places.)
  4. Assign the overhead costs to each product by using the activity rates computed in Requirement 3.
  5. Conceptual Connection Comment on the difference between the assignment in Requirement 1 and the activity-based assignment.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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