The 1 9 5 Factory produces replacement parts and assemblies for vintage Cessna aircraft. The company is
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Question:
The Factory produces replacement parts and assemblies for vintage Cessna aircraft. The company is considering replacing its current costing system with an activitybased approach. It has identified three activities: computeraided design; fabrication; and assembly and finishing. Data regarding these activities has been collected in the table below.
Activity
Activity Driver
Driver Consumption
Activity Cost Pool
Computeraided design CAD
CAD hours
$
Fabricating
Machine hours
$
Assembly and finishing
Direct labor hours
$
Two jobs are currently complete and ready for delivery to the customer. One is a wing assembly that required raw materials costing $ and consumed direct labor hours at $ per hour The wing assembly is a standard product that required only one hour of CAD time and three hours of machine time.
What is the total cost that an activitybased costing system would assign to this job?
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date: