Hakara Company has been using direct labor costs as the basis for assigning overhead to its...
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Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $10.80 per unit, while product B has been assigned $3.60 per unit Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Coat Driveza Setup hours Pounds of materiala Kilowatt-hours The following cost information pertains to the production of A and B, just two of Hakara's many products: Electric power 6.360,000 100,000 Sumber of units produced 20,000 € 42,000 # $4,000 $ 24,000 $ 40,000 400 1,000 Activity Driver Consumption 20,000 40,000 200 9.000 Required: 1. Use activity based costing to determine a unit cost for each product. (Round your answers to 2 decimal places.) Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $10.80 per unit, while product B has been assigned $3.60 per unit Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Coat Driveza Setup hours Pounds of materiala Kilowatt-hours The following cost information pertains to the production of A and B, just two of Hakara's many products: Electric power 6.360,000 100,000 Sumber of units produced 20,000 € 42,000 # $4,000 $ 24,000 $ 40,000 400 1,000 Activity Driver Consumption 20,000 40,000 200 9.000 Required: 1. Use activity based costing to determine a unit cost for each product. (Round your answers to 2 decimal places.)
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Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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