1.Cushing, Inc., costs products using a normal costing system. The following data are available for last year:...

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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

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Cornerstones of Cost Management

ISBN: 978-1305970663

4th edition

Authors: Don R. Hansen, Maryanne M. Mowen

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