Accel Corp. makes two products: C and D. The following data have been summarized: Indirect manufacturing cost

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Accel Corp. makes two products: C and D. The following data have been summarized:

Indirect manufacturing cost information includes the following:

The company plans to manufacture 150 units of each product. Calculate the product cost per unit for Products C and D using activity-basedcosting.

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Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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Question Posted: Jan 16, 2015 11:05 AM

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Accel Corp. makes two products: C and D. The following data have been summarized: Indirect manufacturing cost

Question:

Product C Product D 2,000 Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit $ 700 300 100 Predetermined Overhead Allocation Rate $ 1,500 per setup Activity Product C Product D Setup Machine maintenance 12 per MHr 1,400 Mr 4,000 MHr 38 setups 75 setups

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Horngrens Financial and Managerial Accounting

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