Question: I could really need help with this exercise, your help is much appreciated Nano Corporation makes plastic and wooden picture frames. The company has assigned
I could really need help with this exercise, your help is much appreciated
Nano Corporation makes plastic and wooden picture frames. The company has assigned $137,000 in monthlymanufacturingoverhead coststo two costpoolsasfollows:$87,000 topowercosts, and$50,000toproductionset-upcosts.
Power costs are allocated to products using machine hours as an activity base. Set-up costs are allocated toproductsbasedonthenumber ofproduction runs eachproduct linerequires.

Plastic Frames Sales revenue ............................................................................ $254,000 Direct materials ......................................................................... $101,000 Direct labor ............................................................................... $53,360 Machine hours ........................................................................... 107,420 Production runs ......................................................................... 65 Units produced and sold ............................................................ 59,000 Wooden Frames $179,000 $38,360 $92,720 7,580 3 5 29,000
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