Jackson Enterprises manufactures two products a basic gizmo and an advanced model gizmo. The company is...
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Jackson Enterprises manufactures two products a basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three activities for allocation of indirect costs. Activity Materials receiving Production setup Quality inspection Cost Driver Cost-Allocation Rate Number of parts Number of setups Inspection time $2.00 per part $500.00 per setup $90 per hour A production run for the basic model is 250 units, for the advanced model, 100 units. Each unit of product consumes the following activities: Number of Parts Number of Setups Inspection Time 10 minutes Basic Gizmo 10 50 Advanced Gizmo 15 25 20 minutes Direct costs for the two products are as follows: Direct Materials $50.00 $95.00 Direct Labor $ 75.00 $125.00 Basic Gizmo Advanced Gizmo The amount of overhead allocated to one unit of the basic model would be a. $592. b. $37. C. $162. d. $65. Jackson Enterprises manufactures two products a basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three activities for allocation of indirect costs. Activity Materials receiving Production setup Quality inspection Cost Driver Cost-Allocation Rate Number of parts Number of setups Inspection time $2.00 per part $500.00 per setup $90 per hour A production run for the basic model is 250 units, for the advanced model, 100 units. Each unit of product consumes the following activities: Number of Parts Number of Setups Inspection Time 10 minutes Basic Gizmo 10 50 Advanced Gizmo 15 25 20 minutes Direct costs for the two products are as follows: Direct Materials $50.00 $95.00 Direct Labor $ 75.00 $125.00 Basic Gizmo Advanced Gizmo The amount of overhead allocated to one unit of the basic model would be a. $592. b. $37. C. $162. d. $65.
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Related Book For
Process Dynamics And Control
ISBN: 978-0471000778
2nd Edition
Authors: Dale E. Seborg, Thomas F. Edgar, Duncan A. Mellich
Posted Date:
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