YesChairs Inc. produces 3 types of chairs for 3 sizes of buyers. Overhead costs incurred during...
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YesChairs Inc. produces 3 types of chairs for 3 sizes of buyers. Overhead costs incurred during the manufacturing process include: Machine maintenance bill $85,000 Quality control bill $65,000 These two bills are allocated to the production of chairs in the following manner; Chairs Small Medium Lare Question 7 a) What is the total OH cost per chair using the ABC system? b) What is the total OH cost per chair using the traditional system? Burgers Soda Fries Production BurgerFun Inc. is a fast food restaurant that serves 6 items. Sales per month Onion Rings Coffee Ice Cream 1500 15000 3000 2700 3,400 2,200 2,400 8,000 Machine Hours Total Direct Materials a) What is the OH cost per item using the ABC system? b) What is the total cost per item using the ABC system? $ 289.00 $ 99.00 $ 66.00 $ 98.00 3000 $ 77.00 1350 $ 89.00 The electrcity bill is 1,0005 this month and has 210,000 KW of consumption 5,400 4,400 4,200 14,000 Quality Inspections 4,100 5,900 8,000 18,000 Total Direct Labor $ 245.00 $ 220.00 $ 122.00 $ 124.00 $ 99.00 S 85.00 KW per item 18 16 15 10 YesChairs Inc. produces 3 types of chairs for 3 sizes of buyers. Overhead costs incurred during the manufacturing process include: Machine maintenance bill $85,000 Quality control bill $65,000 These two bills are allocated to the production of chairs in the following manner; Chairs Small Medium Lare Question 7 a) What is the total OH cost per chair using the ABC system? b) What is the total OH cost per chair using the traditional system? Burgers Soda Fries Production BurgerFun Inc. is a fast food restaurant that serves 6 items. Sales per month Onion Rings Coffee Ice Cream 1500 15000 3000 2700 3,400 2,200 2,400 8,000 Machine Hours Total Direct Materials a) What is the OH cost per item using the ABC system? b) What is the total cost per item using the ABC system? $ 289.00 $ 99.00 $ 66.00 $ 98.00 3000 $ 77.00 1350 $ 89.00 The electrcity bill is 1,0005 this month and has 210,000 KW of consumption 5,400 4,400 4,200 14,000 Quality Inspections 4,100 5,900 8,000 18,000 Total Direct Labor $ 245.00 $ 220.00 $ 122.00 $ 124.00 $ 99.00 S 85.00 KW per item 18 16 15 10
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QUESTION 6 A Calculate the total overhead OH cost per chair using the ABC system STEP 1 First lets calculate the overhead allocation rates Machine maintenance allocation rate Machine maintenance bill ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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