Blue Corp. had always allocated MOH costs to its products using one cost driver: units produced....
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Blue Corp. had always allocated MOH costs to its products using one cost driver: units produced. It made sense, as both products were of comparable size and went through the same process-though they did take different amounts of time in each area. She looked closely at the key activities and likely cost drivers and gathered the following information. Activity Machining Assembly Quality control Total (a) Budgeted cost $168,200 Plant-wide MOH rate 258,500 Quantity of Cost Driver $499,700 Cost Driver Machine hours Direct labor hours 73,000 Quality control hours Units produced Marbled Solid 2,200 15,100 650 700 3,600 /unit produced 8,400 350 Calculate the plant-wide MOH rate if Blue continues to use units produced as its only allocation base. Calculate the MOH costs per unit for each product: Marbled and Solid. (Round answer to 2 decimal places, e.g. 15.25.) 1,800 Blue Corp. had always allocated MOH costs to its products using one cost driver: units produced. It made sense, as both products were of comparable size and went through the same process-though they did take different amounts of time in each area. She looked closely at the key activities and likely cost drivers and gathered the following information. Activity Machining Assembly Quality control Total (a) Budgeted cost $168,200 Plant-wide MOH rate 258,500 Quantity of Cost Driver $499,700 Cost Driver Machine hours Direct labor hours 73,000 Quality control hours Units produced Marbled Solid 2,200 15,100 650 700 3,600 /unit produced 8,400 350 Calculate the plant-wide MOH rate if Blue continues to use units produced as its only allocation base. Calculate the MOH costs per unit for each product: Marbled and Solid. (Round answer to 2 decimal places, e.g. 15.25.) 1,800
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Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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