Casey Company has five activity cost pools and two products. It expects to produce 200,000 units...

 

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Casey Company has five activity cost pools and two products. It expects to produce 200,000 units of its automobile scissors jack and 80,000 units of its truck hydraulic jack. Having identified its activity cost pools and the cost drivers for each cost pool, Casey Company accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Activity Cost Pools Ordering and receiving Machine setup Machining Assembling Inspecting and testing Cost Drivers Purchase orders Setups Machine hours Parts Tests Estimated Overhead $ 200,000 600,000 2,000,000 1,800,000 700,000 $5,300,000 Expected Use of Cost Drivers per Activity 2,500 orders 1,200 setups 800,000 hours 3,000,000 parts 35,000 tests Expected Use of Cost Drivers per Product Scissors Hydraulic Jacks Jacks 1,000 500 300,000 1,800,000 20,000 Required: Using ABC Calculate Per Unit and Total cost of Both Products also Comment? 1,500 700 500,000 1,200,000 15,000 Casey Company has five activity cost pools and two products. It expects to produce 200,000 units of its automobile scissors jack and 80,000 units of its truck hydraulic jack. Having identified its activity cost pools and the cost drivers for each cost pool, Casey Company accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Activity Cost Pools Ordering and receiving Machine setup Machining Assembling Inspecting and testing Cost Drivers Purchase orders Setups Machine hours Parts Tests Estimated Overhead $ 200,000 600,000 2,000,000 1,800,000 700,000 $5,300,000 Expected Use of Cost Drivers per Activity 2,500 orders 1,200 setups 800,000 hours 3,000,000 parts 35,000 tests Expected Use of Cost Drivers per Product Scissors Hydraulic Jacks Jacks 1,000 500 300,000 1,800,000 20,000 Required: Using ABC Calculate Per Unit and Total cost of Both Products also Comment? 1,500 700 500,000 1,200,000 15,000

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Answer Scissor Jacks Hydraulic Jacks Ordering Receiving 1000 80 1500 80 80000 1200... View the full answer