Kevin Hall had been allocating MOH costs to his products using a single plant-wide rate of...
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Kevin Hall had been allocating MOH costs to his products using a single plant-wide rate of $10.00 per DL hour. His accountants were now suggesting the use of the following activity-based rates. $22 per production run $9 per direct labor hour $5 per inspection hour If the most recent job required 60 production runs, 420 DL hours, and 40 inspection hours, specify how much MOH cost would have been allocated under the previous plant-wide rate, as well as what would be allocated using the suggested ABC rates. Allocation using plant-wide rate Allocation using ABC rates Kevin Hall had been allocating MOH costs to his products using a single plant-wide rate of $10.00 per DL hour. His accountants were now suggesting the use of the following activity-based rates. $22 per production run $9 per direct labor hour $5 per inspection hour If the most recent job required 60 production runs, 420 DL hours, and 40 inspection hours, specify how much MOH cost would have been allocated under the previous plant-wide rate, as well as what would be allocated using the suggested ABC rates. Allocation using plant-wide rate Allocation using ABC rates
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Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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