Aruru, LLC (Aruru or the Company) produces a variety of lamps in a highly automated manufacturing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Aruru, LLC (Aruru or the Company) produces a variety of lamps in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost centers are given below. These data represent total costs for all types of lamps produced by the Company. Activity Center Overhead Cost Cost Driver Allocation Rate Unit-level $ 133,000 19,000 labor hours. $7 per labor hour Batch-level $ 72,240 840 setup $86 per setup During the most recent accounting period TLC made 8,600 units of its small tiffany style lamps. Making the lamps required 2,400 labor hours, 66 setups, and consumed 20% of the product-level costs. If the Company uses direct labor hours as the single company wide cost driver, the amount of overhead cost allocated to the tiffany lamps is? Product-level $ 21,000 % of use Facility-level $ 73,800 73,800 units $ 1 per unit Aruru, LLC (Aruru or the Company) produces a variety of lamps in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost centers are given below. These data represent total costs for all types of lamps produced by the Company. Activity Center Overhead Cost Cost Driver Allocation Rate Unit-level $ 133,000 19,000 labor hours. $7 per labor hour Batch-level $ 72,240 840 setup $86 per setup During the most recent accounting period TLC made 8,600 units of its small tiffany style lamps. Making the lamps required 2,400 labor hours, 66 setups, and consumed 20% of the product-level costs. If the Company uses direct labor hours as the single company wide cost driver, the amount of overhead cost allocated to the tiffany lamps is? Product-level $ 21,000 % of use Facility-level $ 73,800 73,800 units $ 1 per unit
Expert Answer:
Answer rating: 100% (QA)
To calculate the overhead cost allocated to the small tiffany style lamps using direct labor hours a... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
Students also viewed these accounting questions
-
X created a trust, income to D for life, then to B for life, remainder to R. D and A have a joint power to invade corpus for the benefit of any person in the world. If D or A dies, the power is...
-
1. CraftMade Company expects to produce 22,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: Production of 1,000 units of...
-
Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost pools are given below (in excel file)....
-
A manufacturer of packaging for companies that produce breakfast cereals is considering alternatives regarding the process it uses to pre-process carton paper used to make the packaging....
-
Suppose asset A has an expected return of 10 percent and a standard deviation of 20 percent. Asset B has an expected return of 16 percent and a standard deviation of 40 percent. If the correlation...
-
Write a program that implement a parallel-form realization based on transposed direct form II second-order modules.
-
A certain data set contains 27 points. The least-squares regression line is computed, with the following results: Construct a 95% confidence interval for 1. b = 5.78, s = 1.35, and (x - x) = 3.4. Se
-
Mitachlordion Technology, Inc. (MTI), has two divisions: Birmingham and Tampa. Birmingham currently sells a diode reducer to manufacturers of aircraft navigation systems for $1,550 per unit. Variable...
-
Pham & Davis currently sells 9 , 8 2 0 motor homes per year at $ 4 5 , 5 0 0 each, and 3 , 6 8 0 luxury motor coaches per year at $ 8 9 , 7 0 0 each. The company wants to introduce a new portable...
-
Jake, Inc., is a manufacturer that just completed the first month of a new fiscal year. After reviewing the variances of actual results from the master budget, the finance department provided an...
-
Find the error in each of the following segments. If the error can be corrected, explain how. A. B. C. D. E. 1 int number; cout < < number < < endl; double realptr; long integer Ptr; integerPtr =...
-
Brockbank Builders Ltd is preparing a cash budget for May and June of 2019. Past records reveal that 20% of all credit sales are collected during the month of sale, 60% in the month following the...
-
Hundreds of UK businesses are setting up shop in the Netherlands in a new twist to the United Kingdoms Brexit saga. When Andrew Moss sought advice from a senior government advisor about his business,...
-
The owner of Smith Hardware has completed a bank reconciliation and cannot get the banks records to agree with the cash records of his business. He concludes that internal control has somehow failed...
-
Ken Dunlop of Dunlops Dishes wishes to prepare a cash budget for the 6 months ending 30 June 2020 so he can arrange for overdraft drawings facilities, if required. The following information is...
-
Centenary Ceramics deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following information was extracted from the...
-
Tasty Foods bakes and sells 2,000 dozen muffins each week. Among the costs are bakers' wages, $24,000; production management salaries, $16,000; production equipment operating costs, $32,000; and...
-
1-Stern observed all of the following results EXCEPT _______ in his experiment. A-one of the recombinant phenotypes was associated with an X chromosome of normal length B-the number of car, B+ male...
-
Palmer Company uses an activity-based costing system. It has the following manufacturing activity areas; related drivers used as allocation bases, and cost allocation rates: During the month, 100...
-
Polar Bear Ski Wear is a shop that sells skiwear at a ski resort. Its cost accountant developed the following scatter plot for the cost of electricity for lights, heating, and cooling against retail...
-
Play Time Toys is organized into two major divisions: marketing and production. The production division is further divided into three departments: puzzles, dolls, and video games. Each production...
-
What are generally accepted accounting principles (GAAP)?
-
Describe the concepts, principles and constraints underlying financial statements.
-
Accounting is the process of: (a) recognising, measuring, recording and communicating. (b) identifying, measuring, recording and communicating. (c) identifying, recording, classifying and...
Study smarter with the SolutionInn App