Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two...
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Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Annual production in units Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours Total manufacturing overhead costs are as follows: Machining costs Setup costs Inspection costs Financial Calculator 60000 240000 1500000 20000 120000 240 6000 72000 150000 135000 Mathematical Calculator 150000 480000 150000 40000 240000 60 3000 Cost Driver Machine-hours Number of production runs Inspection hours 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (40 marks) 2. Compute the manufacturing cost per unit for each product (20 Marks) Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Annual production in units Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours Total manufacturing overhead costs are as follows: Machining costs Setup costs Inspection costs Financial Calculator 60000 240000 1500000 20000 120000 240 6000 72000 150000 135000 Mathematical Calculator 150000 480000 150000 40000 240000 60 3000 Cost Driver Machine-hours Number of production runs Inspection hours 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. (40 marks) 2. Compute the manufacturing cost per unit for each product (20 Marks)
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Answer rating: 100% (QA)
1 Calculating Manufacturing Overhead Cost per Unit Cost Driver Selection Machining Costs The most ap... View the full answer
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date:
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