1.Cushing, Inc., costs products using a normal costing system. The following data are available for last year:...
Question:
1.Cushing, Inc., costs products using a normal costing system. The following data are available for last year:
Budgeted:
Overhead………………………$357,000
Machine hours………………..140,000
Direct labor hours…………….17,000
Actual:
Overhead……………………..$355,000
Machine hours……………….137,000
Direct labor hours……………16,500
Prime cost……………………$753,500
Number of units…………….250,000
Overhead is applied on the basis of direct labor hours.
What was last year’s per unit product cost?
a. $1.39
b. $4.40
c. $4.43
d. $3.01
2. Nonunit-level drivers are prominent in activity-based coting systems. Which of the following is a nonunit-level driver?
a. Machine hours
b. Direct materials
c. Assembly hours
d. Setup hours
Step by Step Answer:
Cornerstones of Cost Management
ISBN: 978-1305970663
4th edition
Authors: Don R. Hansen, Maryanne M. Mowen