Question: Day, Corp., is considering the use of activity-based costing. The following information is provided for the production of two product lines: Day plans to produce

Day, Corp., is considering the use of activity-based costing. The following information is provided for the production of two product lines:

Day plans to produce 400 units of Product A and 375 units of Product B.
Requirement
1. Compute the ABC indirect manufacturing cost per unit for eachproduct.

Activity Cost Cost Driver Number of setups Setup 106,000 Machine maintenance 55,000 Machine hours Total indiroct manufacturing costs 24 161,000 Product B Total Product A Direct labor hours 6,500 5,500 12,000 Number of setups 20 180 200 Number of machine hours 2,400 4,000 1,600 %24

Step by Step Solution

★★★★★

3.55 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Req 1 Cost allocation rates Setup 106000 200 setups 530 per setup Machine maint... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

69-B-M-A-A-B-C (42).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

The basic ideas justifying the use of activity based costing (ABC) and activity-based budgeting (ABB) are well publicized, and the number of applications has increased. However, there are apparently...

The controller for Honolulu Hello is considering the use of flexible budgeting for the company. However, the companys founder, Don Hello, is uncertain of the purpose of the change. The controller has...

A bank is considering the use of options to deal with a serious funding cost problem. Deposit interest rates have been rising for six months, currently averaging 5 percent, and are expected to climb...

Day Corp is considering the use of activity-based costing. The following information is provided for the production of two product lines Click the icon to view the information) Day plans to produce...

Just really need some help on this question I will rate! Many thanks and God bless!!! S19-5 (similar to) Question Help Day Corp. is considering the use of activity-based costing. The following...

Activity Cost Allocation Base Setup $105,000 Number of setups Machine maintenance 65,000 Number of machine hours Total indirect manufacturing costs $170,000 Product A Product B Total Direct labor...

Day Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: Day plans to produce 400 units of Product A and 375 units of...

= Homework: Chapter 4 Homework Question 3, SM4-5 (similar to) Part 1 of 6 HW Score: 0% 0 of 150 points O Points: 0 of 10 Dunst Corp. is considering the use of activity-based costing. The following...

State which category of funds (governmental-type, proprietary-type, or fiduciary-type) would be used by a state government for each of the following purposes: 1. To construct a new highway 2. To pay...

From the following information, construct a simple income statement and balance sheet: Sales $ 900,000 Finished products 190.000 long term debt 400.000 Raw Materials 140.000 Money 75,000 cost of...

Fong s name is misspelled on a negotiable instrument. How can Fong endorse this instrument? Multiple Choice He cannot; instead, he must return the instrument to the originator to correct it . He must...

The acceleration due to gravity of a particle falling toward the earth is a = ?gR2/r2, where r is the distance from the center of the earth to the particle, R is the radius of the earth, and g is the...

A 4.00-kg object is attached to a vertical rod by two strings, as in Figure P6.11. The object rotates in a horizontal circle at constant speed 6.00 m/s. Find the tension in (a) The upper string and...

The current-density magnitude in a certain circular wire is J = (2.75 x 1010 A/m4) r2, where r is the radial distance out to the wire's radius of 3.00 mm. The potential applied to the wire (end to...

Kalin Corporation had 2010 net income of $1,000,000. During 2010, Kalin paid a dividend of $2 per share on 100,000 shares of preferred stock. During 2010, Kalin had outstanding 250,000 shares of...

A tracer is used to characterize the degree of mixing in a continuous stirred tank. Water enters and leaves the mixer at a rate of V (m 3 /min). Scale has built up on the inside walls of the tank, so...

A more recent study of Feline High-Rise Syndrome (FHRS) (see Chapter 1, Example 1.2) included data on the month in which each of 119 cats fell (Vnuk et al. 2004). The data are in the accompanying...

MM with Corporate Taxes Companies U and L are identical in every respect except that is un evered while L has $14 millio of 6% bonds outstanding Assu me that. i the MM assumptions are met. 2) Both...

In its first 10 years a mutual fund produced an average annual return of 19.45%. Assume that money invested in this fund continues to earn 19.45% compounded annually. How long will it take money...

Which of the following may contractually obligate a professional? Choose 2 answer choices . A . oral agreement to represent the client B . A client referral letter from another professional C . An...