Assume Texas Instruments uses activity-based costing for variable overhead costs. For July, it has three cost drivers
Question:
Assume Texas Instruments uses activity-based costing for variable overhead costs. For July, it has three cost drivers with the following standard and actual amounts for 10,000 units of output.
Prepare an analysis of the variances like that in Exhibit10.11.
Transcribed Image Text:
Actual Standard Driver Unit 0.50 $1.00 $1.00 Standard Input Activity Center Cost Driver Rate per Cost for 10,000 Units Actua Number of of Output Costs Inputs Used 40,000 test minutes Qua Test minutes $20,000 42,000 test testing Energy Machine hours Indirect Direct labor minutes 40,000 machine $40,000 38,000 machine hours hours 60,000 labor $56,800 61,000 labor labor hours hours hours
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Quality Testing Energy Indirect Labor Actual Costs 20000 40000 56800 Pric...View the full answer
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Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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