Rupert wood and furniture produces tables and chairs. No of production per year Direct Lumber Cost...
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Rupert wood and furniture produces tables and chairs. No of production per year Direct Lumber Cost Direct labor hours Direct labor cost Machine hours No of production run Inspection hours Tables 30,000 $ 150,000 3,100 hours $ 3,100,000 40,000 35 900 Total manufacturing cost is as follows; Machining cost: $ 200,000 Setup cost: $ 98,000 Inspection Cost: $ 60,000 Chairs 45,000 $ 110,000 4,200 hours $4,200,000 60,000 35 700 Calculation: a. Choose a cost driver for reach overhead cost pool and calculate the manufacturing overhead cost per for each manufacturing cost. b. Calculate manufacturing cost for each product. Rupert wood and furniture produces tables and chairs. No of production per year Direct Lumber Cost Direct labor hours Direct labor cost Machine hours No of production run Inspection hours Tables 30,000 $ 150,000 3,100 hours $ 3,100,000 40,000 35 900 Total manufacturing cost is as follows; Machining cost: $ 200,000 Setup cost: $ 98,000 Inspection Cost: $ 60,000 Chairs 45,000 $ 110,000 4,200 hours $4,200,000 60,000 35 700 Calculation: a. Choose a cost driver for reach overhead cost pool and calculate the manufacturing overhead cost per for each manufacturing cost. b. Calculate manufacturing cost for each product.
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To calculate the manufacturing overhead cost per unit for each product we need to choose a cost driver for each overhead cost pool The cost driver is ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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