Witness Manufacturing produces two types of cameras: 35mm and digital. The cameras are manufactured by a continuous
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Witness Manufacturing produces two types of cameras: 35mm and digital. The cameras are manufactured by a continuous process. Four activities have been identified: machining, assembly, reception and packaging. Resource drivers have been used to assign costs to each activity. The general activities, their costs and other related data are as follows:
Product | machine hours | settings | Receiving orders | packing orders |
35 mm | 12,000 | 200 | 300 | 500 |
Digital | 12,000 | 450 | 1200 | 2,500 |
costs | $70,000 | $50,000 | $10,000 | $30,000 |
Using a receiving activity rate based on order receipt, allocate receiving costs to 35mm cameras.
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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