Offshore Company makes 2 different types of boats sail and fishing boats. The company consists of...
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Offshore Company makes 2 different types of boats sail and fishing boats. The company consists of two different departments, design & engineering, and production. The company has decided to allocate overhead costs in each of the two cost pools. Data on estimated overhead follows: Activity Allocation Base Design # of designs Production Labor hours Estimated Overhead Cost Sail Estimate Fishing Estimate $180,000 22 designs 18 designs $945,000 4,000 hours 3,500 hours If the company produces and sells 18 sail boats, how much overhead will be assigned to each sail boat produced? Offshore Company makes 2 different types of boats sail and fishing boats. The company consists of two different departments, design & engineering, and production. The company has decided to allocate overhead costs in each of the two cost pools. Data on estimated overhead follows: Activity Allocation Base Design # of designs Production Labor hours Estimated Overhead Cost Sail Estimate Fishing Estimate $180,000 22 designs 18 designs $945,000 4,000 hours 3,500 hours If the company produces and sells 18 sail boats, how much overhead will be assigned to each sail boat produced?
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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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