Question: Please help fast! Will rate/thumbs up fast! ABC Inc. produces a single product and manufactured 20,000 units last year. The company budgeted the following overhead

 Please help fast! Will rate/thumbs up fast! ABC Inc. produces asingle product and manufactured 20,000 units last year. The company budgeted the

following overhead costs for the year: Indirect Factory Wages: Factory Utilities: FactoryPlease help fast! Will rate/thumbs up fast!

ABC Inc. produces a single product and manufactured 20,000 units last year. The company budgeted the following overhead costs for the year: Indirect Factory Wages: Factory Utilities: Factory Depreciation: $100,000 $ 40,000 $ 60,000 Direct manufacturing costs per unit are $50. The company uses an activity-based costing system which compiles costs into 3 cost pools, machining, milling and assembly. The costs allocated to these activity cost pools break down as follows: Usage: Cost: Indirect Factory Wages: Factory Utilities: Factory Depreciation: Machining Milling Assembly 50% 30% 20% 40% 40% 20% 0% 10% 90% The following cost drivers are used for each of the following activity cost pools: Machining: Machine Hours Milling: Milling Hours Assembly: Direct Labour Hours Practical capacity for each of the cost pools are shown below: . . Machining: 18,000 Machine Hours. Milling: 107,000 Milling Hours. Assembly: 12,500 Direct Labour Hours Actual Usage was as follows: Machining: 40,000 Machine Hours. Milling: 80,000 Milling Hours. Assembly: 15,000 Direct Labour Hours. The budgeted overhead rate to be charged for the Machining activity was: Multiple Choice $7 per machine hour $1 per milling hour $4 per machine hour $4 per direct labour hour

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!