The Hillman Company sells and services lawn mowers, snow blowers, and other equipment. The service department uses
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Salaries of mechanics.................................$120,000
Fringe benefits............................................54,000
General and administrative..............................18,000
Depreciation..............................................42,000
Billable direct labor hours.................................4,500
a. Determine Hillman Company's service department's cost driver rate to be used to assign conversion cost on the basis of billable direct labor hours.
b. Job 254 required $47.40 of materials and 0.7 direct labor hours. Determine the price charged for job 254.
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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