Automotive Products (AP) designs and produces automotive parts. In 2017, the actual variable manufacturing overhead is $
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Question:
Usage of Cost Drivers by Customer | |||||
Contract | |||||
Manufacturing | Rural | Janek | Island | ||
Department | Cost Driver | Overhead in 2017 | Motors | Motors | Auto |
Design | CAD-design-hours | $39,000 | 110 | 200 | 80 |
Engineering | Engineering-hours | 29,600 | 70 | 60 | 240 |
Production | Machine-hours | 240,000 | 120 | 2,800 | 1,080 |
Total | $308,600 |
1. | Compute the manufacturing overhead allocated to each customer in 20172017 using the simple costing system that uses machine hours as the allocation base. |
2. | Compute the manufacturing overhead allocated to each customer in 20172017 using department-based manufacturing overhead rates. |
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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