Direct materials is the only cost directly traced to products at Tinnon Industries. The cost driver in
Question:
Direct materials is the only cost directly traced to products at Tinnon Industries. The cost driver in the Power Dept, a support dept of Tinnon is Kwh. The Power Dept planned $15,750 in fixed cost and $4,550 in variable cost to support a plan of 35,000 Kwh. Actual fixed cost in the Power Dept was $16,000 and actual variable cost was $4,254. The cost driver in Production Dept A was machine hours and Dept A planned to use 21,000 Kwh and 14,000 machine hours. By period end, Dept A used 20,000 Kwh and 18,000 machine hours. Directly traced plan and actual cost in Dept A is shown below. Direct material in production order #0015 was $45.00. The order was produced in Dept A and 15 labor hours was used. What was the cost of the order?
Plan Actual
personnel $34,000 $36,500
factory supplies 1,950 1,300
factory deprec. 38,000 41,000
A: $145.00
B: $137.25
C: $51.15
D: $45.00
E: $120.00
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren