Cuisinart Corporation uses an Activity-Based-Costing system. They have three activity cost pools: Assembly, Processing Orders, and...
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Cuisinart Corporation uses an Activity-Based-Costing system. They have three activity cost pools: Assembly, Processing Orders, and inspection. The total cost for Assembly was $613.250 based on 55,000 machine-hours. The company processed 1,500 orders for a total cost of $46,170. Inspection resulted in 1,900 inspection-hours for a total cost of $146,110. Cuisinart sells 350 meat smokers annually for $113.70 each. On a per unit basis, the direct materials cost is $48.14 and the direct labor cost is $11.62. Annually, total meat smoker production requires 1,040 machine-hours and 30 inspection hours. Some customers buy more than one smoker per order. In total, Cuisinart processes a total of 60 orders for the meat smoker. Calculate the total product margin for annual sales of the 360 meat smokers. Cuisinart Corporation uses an Activity-Based-Costing system. They have three activity cost pools: Assembly, Processing Orders, and inspection. The total cost for Assembly was $613.250 based on 55,000 machine-hours. The company processed 1,500 orders for a total cost of $46,170. Inspection resulted in 1,900 inspection-hours for a total cost of $146,110. Cuisinart sells 350 meat smokers annually for $113.70 each. On a per unit basis, the direct materials cost is $48.14 and the direct labor cost is $11.62. Annually, total meat smoker production requires 1,040 machine-hours and 30 inspection hours. Some customers buy more than one smoker per order. In total, Cuisinart processes a total of 60 orders for the meat smoker. Calculate the total product margin for annual sales of the 360 meat smokers.
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Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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