Carriage Manufacturing uses an activity-based costing system. The company produces Model 21 and Model 22. Information relating
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Carriage Manufacturing uses an activity-based costing system. The company produces Model 21 and Model 22. Information relating to the two products is as follows:
Model 21 | Model 22 | |
Units produced | 24,000 | 30,000 |
Machine hours | 7,500 | 8,500 |
Direct labor hours | 8,000 | 12,000 |
Material handling (number of moves) | 4,000 | 6,000 |
Setups | 5,000 | 7,000 |
The following costs are reported:
Material handling | $ 40,000 |
Labor-related overhead | 120,000 |
Setups | 60,000 |
Labor-related overhead costs assigned to Model 21 are
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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