Facey Manufacturing, a manufacturer of a variety of products, uses an activity-based costing system. Information from...
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Facey Manufacturing, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows: Total cost Activity Cost Pool Assembly 40,000 Inspection 30,000 Packaging $35,000 7,000 orders Facey Manufacturing makes 50 of its products A34 a year, which requires a total of 80 machine hours, 11 inspection hours, and 25 orders. Product A34 requires $20 in direct materials per unit and $16 in direct labour per unit. $380,000 $450,000 Total Activity Machine -hours Inspection-hours Activity rate Required: A. Calculate the cost pool activity rate for each of the three activities (3 Marks). B. How much manufacturing overhead would be allocated to Product A34 in total? (3 Marks) Facey Manufacturing, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows: Total cost Activity Cost Pool Assembly 40,000 Inspection 30,000 Packaging $35,000 7,000 orders Facey Manufacturing makes 50 of its products A34 a year, which requires a total of 80 machine hours, 11 inspection hours, and 25 orders. Product A34 requires $20 in direct materials per unit and $16 in direct labour per unit. $380,000 $450,000 Total Activity Machine -hours Inspection-hours Activity rate Required: A. Calculate the cost pool activity rate for each of the three activities (3 Marks). B. How much manufacturing overhead would be allocated to Product A34 in total? (3 Marks)
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Answer rating: 100% (QA)
A To calculate the cost pool activity rate for each of the three activities we use the following for... View the full answer
Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
Posted Date:
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