Combrai Informatique (CI) manufactures and sells computers and computer peripherals to several nationwide retail chains. Marcel Proust
Question:
Combrai Informatique (CI) manufactures and sells computers and computer peripherals to several nationwide retail chains. Marcel Proust is the manager of the printer division. Its two largest selling printers are P-41 and P-63.
The manufacturing cost of each printer is calculated using CI's activity-based costing system. CI has one direct-manufacturing cost category (direct materials) and the following five indirect-manufacturing cost pools:
Product characteristics of P-41 and P-63 are as follows:
Required
What is the manufacturing cost of P-41? Of P-63?
Transcribed Image Text:
Indirect manufacturing cost pool Allocation base Allocation rate 1. Materials handling 2. Assembly Number of parts Hours of assembly time 40 per hour of assembly time 1.20 per part 3. Machine insertion 4. Manual insertion 5. Quality testing management of parts of parts Number of machine- E0.70 per machine-inserted part inserted parts inserted parts time Number of manually 2.10 per manually inserted part Hours of quality testing 25 per testing-hour P-41 P-63 Direct material costs Number of parts Hours of assembly time Number of machine-inserted parts 407.50 292.10 85 parts 46 parts 3.2 hours 1.9 hours 49 parts 31 parts 36 parts 15 parts 1.4 hours 1.1 hours Hours of quality testing
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Related Book For
Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
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