Question: can someone please help solve this and show work? thank you so much Use the following information to answer questions 5- 6: Ellyn's Doll House
can someone please help solve this and show work? thank you so much
Use the following information to answer questions 5- 6: Ellyn's Doll House Company (EDHC) manufactures large and small doll houses. Historically, EDHC has utilized a traditional job order costing system to allocate manufacturing overhead. They are considering switching to an Activity Based Costing System. (All per unit answers are rounded to the nearest dollar.) EDHC has the following Direct Labor and Direct Material Costs for a large doll house and a small doll house. Large $50 Small $30 15 25 Direct Materials Direct Labor OH applied Total 5. Overhead is applied on the basis of machine hours. It takes 3 machine hours to produce a large doll house and 2 machine hours to produce a small doll house. EDHC produces 2,000 large doll houses and 10,000 small doll houses in a year. Total manufacturing overhead is $780,000. Under the traditional job order costing system, what is the cost of one small doll house (rounded to nearest dollar)? a. $45 b. $105 c. $110 d. $30 e. $75 Total 6. EDHC does an Activity Based Cost Analysis and identifies 3 major activities. Here is an analysis of their findings: Expected Activity Activity/Measure Overhead Large Small Labor related/direct labor hrs ($58) $580,000 4,000 6,000 10,000 direct labor hrs Machine related/machine hrs ($4) $104,000 6,000 20,000 26,000 machine hrs Production orderso. of orders ($320) $ 96,000 100 200 300 orders $780,000 Under an Activity Based Costing System, what is the cost of one small doll house (rounded to nearest dollar)? a) $45 b) $94 c) $110 d) $92 e) $30
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