Shine Company produces two types of control devices: Standard and Deluxe. The price for Standard and...
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Shine Company produces two types of control devices: Standard and Deluxe. The price for Standard and Deluxe is set based upon total manufacturing cost per unit. The following data pertains the two products: Production/sales units. Selling price Direct material Direct labor STANDARD 60,000 $17.00 $2.50 $4.50 DELUXE 40,000 $20.00 $6.20 $7.20 DLH demanded by each product line 24,000 DLH 20,000 DLH In addition to direct material and direct labor costs, each product is charged with a portion of company's total factory overhead costs of $300,960. Currently, Shine is allocating factory overhead costs to product lines based upon direct labor hours. Compute total manufacturing cost per unit of Deluxe under current plant-wide overhead allocation method based on direct labor hours. Example of Answer: 4.67 or 0.30 or 2.00 Two decimal points. No comma, space, or $ sign. Answer: 25.94 Shine Company produces two types of control devices: Standard and Deluxe. The price for Standard and Deluxe is set based upon total manufacturing cost per unit. The following data pertains the two products: Production/sales units. Selling price Direct material Direct labor STANDARD 60,000 $17.00 $2.50 $4.50 DELUXE 40,000 $20.00 $6.20 $7.20 DLH demanded by each product line 24,000 DLH 20,000 DLH In addition to direct material and direct labor costs, each product is charged with a portion of company's total factory overhead costs of $300,960. Currently, Shine is allocating factory overhead costs to product lines based upon direct labor hours. Compute total manufacturing cost per unit of Deluxe under current plant-wide overhead allocation method based on direct labor hours. Example of Answer: 4.67 or 0.30 or 2.00 Two decimal points. No comma, space, or $ sign. Answer: 25.94
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The factory overheads will be absorbed on the basis of direct labor hoursTherefore calculate the ove... View the full answer
Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
Posted Date:
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