Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an...
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Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. Units produced Direct materials cost per unit Machine hours per unit Production runs per month Machine depreciation Setup labor Material handling Total $ V-1 10,000 a. Overhead rate D. Machine depreciation Setup labor Material handling 2 $ 66,000 30,000 16,800 $112,800 1 80 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. V-2 1,000 $ 2 40 Exercise 9-38 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) equired: Upriver currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the month? (Round our answer to 2 decimal places.) Upriver is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machine epreciation, production runs for setup labor, and direct material dollars for material handling. Compute the cost driver rates for the roposed system at Upriver. (Round "Machine depreciation" answer to 2 decimal places.) per machine hour per machine hour per production run % direct material cost Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. Units produced Direct materials cost per unit Machine hours per unit Production runs per month Machine depreciation Setup labor Material handling Total $ V-1 10,000 a. Overhead rate D. Machine depreciation Setup labor Material handling 2 $ 66,000 30,000 16,800 $112,800 1 80 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. V-2 1,000 $ 2 40 Exercise 9-38 (Algo) Activity-Based Costing and Cost Driver Rates (LO 9-4) equired: Upriver currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the month? (Round our answer to 2 decimal places.) Upriver is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machine epreciation, production runs for setup labor, and direct material dollars for material handling. Compute the cost driver rates for the roposed system at Upriver. (Round "Machine depreciation" answer to 2 decimal places.) per machine hour per machine hour per production run % direct material cost
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
Posted Date:
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