Wang Company has established the following overhead cost pools and cost drivers for the month of...
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Wang Company has established the following overhead cost pools and cost drivers for the month of May: Overhead Costs $22,800 40,000 26,000 Cost Pool Purchase orders Machine setups Electricity Cost Driver Levels 20 orders 100 setups 26,000 kilowatt hours The following information pertains to the actual consumption of activity resources for two sample jobs completed during May. Number of units produced Number of purchase orders Number of setups Number of kilowatt hours Job M1 560 15 15 560 Job M2 1,000 10 10 1,000 Using ABC, what is the overhead cost per unit produced for Job M2? Wang Company has established the following overhead cost pools and cost drivers for the month of May: Overhead Costs $22,800 40,000 26,000 Cost Pool Purchase orders Machine setups Electricity Cost Driver Levels 20 orders 100 setups 26,000 kilowatt hours The following information pertains to the actual consumption of activity resources for two sample jobs completed during May. Number of units produced Number of purchase orders Number of setups Number of kilowatt hours Job M1 560 15 15 560 Job M2 1,000 10 10 1,000 Using ABC, what is the overhead cost per unit produced for Job M2?
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To calculate the overhead cost per unit produced for Job M2 using ActivityBased Costing ABC you need ... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
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