Hollywood Squares Inc. manufactures two types of children's building blocks: wood and foam. The company has...
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Hollywood Squares Inc. manufactures two types of children's building blocks: wood and foam. The company has used a traditional overhead costing system in the past based on direct labor costs. The company has decided to explore an activity-based costing system. Two cost pools have been identified in their manufacturing process -machine setup and machining. Additional information is as follows: Wood Foam Direct material costs (per unit) $0.75 $1.25 Direct labor costs (per unit) $0.25 $0.50 Machine hours (annually) 1,000 1,000 Setup hours (annually) 100 400 Production in units (annually) 225,000 75,000 Total estimated overhead costs are $270,000. Requirement: Calculate the product cost per unit for the wood blocks using the traditional overhead allocation system. Round to two decimals. Omit the dollar sign and any spaces when entering your response. Hollywood Squares Inc. manufactures two types of children's building blocks: wood and foam. The company has used a traditional overhead costing system in the past based on direct labor costs. The company has decided to explore an activity-based costing system. Two cost pools have been identified in their manufacturing process -machine setup and machining. Additional information is as follows: Wood Foam Direct material costs (per unit) $0.75 $1.25 Direct labor costs (per unit) $0.25 $0.50 Machine hours (annually) 1,000 1,000 Setup hours (annually) 100 400 Production in units (annually) 225,000 75,000 Total estimated overhead costs are $270,000. Requirement: Calculate the product cost per unit for the wood blocks using the traditional overhead allocation system. Round to two decimals. Omit the dollar sign and any spaces when entering your response.
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Total direct labor cost 025x225000050x75000 5625037500 93750 Predetermined ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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