Wildhorse Corp. reported the following detail for its budgeted MOH costs, broken into three key activities Activity Material handling Machining Inspections Total Budgeted Cost $50,000 Material handling Plant-wide MOH rate $ Machining Inspections 100,000 (a) Calculate Wildhorse's plant-wide MOH rate if allocations are based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.) $ 36,000 $186,000 $ (b) Calculate activity rates for each key activity. $ Budgeted Quantity of Cost Driver material moves 10,000 machine hours inspections 2,000 4,000 Activity rate /machine hour /material move /machine hour /inspection

Wildhorse Corp. reported the following detail for its budgeted MOH costs, broken into three key activities Activity Material handling Machining Inspections Total Budgeted Cost $50,000 Material handling Plant-wide MOH rate $ Machining Inspections 100,000 (a) Calculate Wildhorse's plant-wide MOH rate if allocations are based on machine hours. (Round answer to 2 decimal places, e.g. 15.25.) $ 36,000 $186,000 $ (b) Calculate activity rates for each key activity. $ Budgeted Quantity of Cost Driver material moves 10,000 machine hours inspections 2,000 4,000 Activity rate /machine hour /material move /machine hour /inspection

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

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