Question: Sharp Pro manufactures two models of sport bows. Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by

 Sharp Pro manufactures two models of sport bows. Basic and Deluxe,using a combination of machining and hand finishing. Machine setup costs are

Sharp Pro manufactures two models of sport bows. Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by the number of setups. Indirect manufacturing labor costs increase with direct manufacturing labor costs. Equipment and maintenance costs increase with the number of machine-hours, and facility rent is paid per square foot. Capacity of the facility is 9, 000 square feet and Sharp Pro is using only 60% of this capacity. Sharp Pro records the cost of unused capacity as a separate line item and not as a product cost. For the current year. Sharp Pro has budgeted the following: Requirement 1: Calculate the cost per unit of each cost-allocation base. Select the formula you will use, then calculate the cost driver rate. (Enter any percentages as a rate to one decimal place. For example, enter 10% as .1. Abbreviations used manuf = manufacturing, equip = equipment, maint = maintenance) _________/________ = Cost driver rate

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