Titan Corp. has identified the following information: Cost pools Material handli

Question

Titan Corp. has identified the following information:

Cost pools
Material handling---------$41,040
Machine maintenance------24,600

Cost drivers
Number of material moves------720
Number of machine hours------82,000

1. Calculate Titan's activity rate for each cost pool. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Activity rate
Materials Handling: $__________per material move
Machine Maintenance:$_________per machine hour

2. Determine the total amount of overhead assigned to Titan

Explanation / Answer

1.Materials Handling: $41,040/720 = $57 per material move Machine Maintenance:$ 24,600/ 82000 =$0.3 per machine hour 2. -----------------------------------Product A------------Product B Number of material moves--------470 ------------------250 Number of machine hours--------42,000---------------40,000 % of material moves by Product A = 470/720 = 65.277% % of material moves by Product b = 250/720 = 34.722% % of machine hours by Product A = 42000/82000 = 51.219% % of material moves by Product b = 40000/82000 = 48.78% Material handling---------$41,040 Machine maintenance------24,600 Total overhead assigned Product A = $41,040 *65.277% + 24,600 * 51.219% = 39390 Product B= $41,040*34.722% + 24,600 * 48.78% = 26,250

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