Activity rates zapato company produces two types of boots: vaquero and vaquera. there are four activities associated with the two products. drivers for the four activities are as follows: vaquero vaquera cutting hours 2,000 5,400 assembly hours 2,850 4,650 inspection hours 650 2,430 rework hours 150 450 the following activity data have been collected: cutting $162,800 assembling $337,500 inspecting $55,440 reworking $39,000 required: calculate the activity rates that would be used to assign costs to each product. if required, round your answers to the nearest cent.

Rate per activity shall be:

Cutting = $22 per hour

Assembling = $45 per hour

Inspection  = $18 per hour

Rework = $65 per hour

Explanation:

As for the information provided:

There are four activities, accordingly their drivers are:

Cutting hours = 2,000 + 5,400 = 7,400

Assembly hours = 2,850 + 4,650 = 7,500

Inspection hours = 650 + 2,430 = 3,080

Rework hours = 150 + 450 = 600

Cost associated with these activities are as follows:

Cutting = $162,800

Assembling = $337,500

Inspecting = $55,440

Reworking = $39,000

Rate per activity shall be:

Cutting = $162,800/7,400 = $22 per hour

Assembling = $337,500/7,500 = $45 per hour

Inspection = $55,440/3,080 = $18 per hour

Rework = $39,000/600 = $65 per hour

answer; is usually (less than) the socially optimal level of consumption;