Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost
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Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers:
Overhead Costs Pool | Cost Driver | Overhead Cost | Budgeted Level for Cost Driver |
Quality control | Number of inspections | 72000 | 1200 |
Machine operation | Machine hours | 154,000 | 1,000 |
Materials handling | Number of batches | 1800 | 40 |
Miscellaneous overhead cost | Direct labor hours | 58000 | 5800 |
Sheen Co. has an order for 1,000 laser printers that has the following production requirements:
Number of inspections | 180 |
Machine hours | 245 |
Number of batches | 5 |
Direct labor hours | 780 |
Using activity-based costing, applied quality control factory overhead for the 1,000 laser printers order is:
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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