Question

1). Mills, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $24 per machine hour, and the activity rate for Inspection is $59 per batch. The activity drivers are used as follows: Product A Product X Machine hours 1,993 1,486 Number of batches 200 376 What is the total cost of Inspection? ______________

2). Parker Company makes custom chef aprons. Parker has the following costs in its manufacturing company related to labor. Wages paid to seamstresses $18,918 Wages paid to sales team 18,129 Wages paid to cutters 10,770 Wages paid to the seamstress supervisor 15,182 Office manager’s salary 19,053 Sales Commissions 6,785 What are Parker Company's direct labor costs? _

Answer 1

1
Total number of batches	576	=200+376
X Activity rate for Inspection	59
Total cost of Inspection	33984
2
Wages paid to seamstresses	18918
Wages paid to cutters	10770
Parker Company's direct labor costs	29688