Rawlings Corp. has two product lines, A and B. Rawlings has identified the following detailed information about its cost pools and cost drivers.

Rawlings Corp. has two product lines, A and B. Rawlings has identified the following detailed information about its cost pools and cost drivers.

 

Cost pools
Material handling	$56,320
Machine maintenance	$17,850
Cost drivers
Number of material moves	440
Number of machine hours	51,000

 

Requirement 1:

Calculate Rawlings’ activity rate for each cost pool. (Round your maintenance answer to 2 decimal places. Omit the "$" sign in your response.)

 

	Activity rate
Materials Handling	$ 128	per  material move
Machine Maintenance	$ 0.35	per machine hour

 

Requirement 2:

Determine the total amount of overhead assigned to Rawlings' products if they have the following requirements: (Omit the "$" sign in your response.)

 

	Product A	Product B
Number of material moves	250	190
Number of machine hours	17,300	33,700

 

	Total overhead assigned
Product A	$ 38,055
Product B	$ 36,115

Explanation:

1:

Material Handling:  $56,320 / 440 = $128 /move

Maintenance:  $17,850 / 51,000 = 0.35 /machine hr

2:

Product A
Materials Handling:	250 moves × $128 =	$ 32,000
Maintenance:	17,300 MH × $0.35 =	6,055
Total OH		$ 38,055

 

Product B
Materials Handling:	190 moves × $128 =	$ 24,320
Maintenance:	33,700 MH × $0.35 =	11,795
Total OH		$ 36,115