Rundle Company makes two types of circuit boards. One is a high-caliber board designed to accomplish...
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Rundle Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks, he other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Rundle incurred $290,000 of inspection cost. Rundle recently established an activity-based costing system that classifies its activities nto four categories. Categories and appropriate cost drivers follow Direct Labor Number of Number of Number of Square Feet 50,000 95,000 145,000 Hours Batches Inspectors High caliber Low caliber 6,000 23,000 29,000 29 29 Total 58 Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $290,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.) Allocated Cost High Caliber Boards Low Caliber Boards (a) Unit-kevel activities (b) Batch-level activities (c) Product-level activities (d) Facility-level activities Rundle Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks, he other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Rundle incurred $290,000 of inspection cost. Rundle recently established an activity-based costing system that classifies its activities nto four categories. Categories and appropriate cost drivers follow Direct Labor Number of Number of Number of Square Feet 50,000 95,000 145,000 Hours Batches Inspectors High caliber Low caliber 6,000 23,000 29,000 29 29 Total 58 Required Allocate the inspection cost between the two products assuming that it is driven by (a) unit-level activities, (b) batch-level activities, (c) product-level activities, or (d) facility-level activities. Note that each allocation represents a separate alternative. In other words, the $290,000 of inspection cost will be allocated four times, once for each cost driver. (Do not round intermediate calculations.) Allocated Cost High Caliber Boards Low Caliber Boards (a) Unit-kevel activities (b) Batch-level activities (c) Product-level activities (d) Facility-level activities
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Answer Explanation a Unit lenel atinities Total Direct Gabor ... View the full answer
Related Book For
Probability and Random Processes With Applications to Signal Processing and Communications
ISBN: 978-0123869814
2nd edition
Authors: Scott Miller, Donald Childers
Posted Date:
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