A company makes two products using the same type of materials and skilled workers. The following information

Question:

A company makes two products using the same type of materials and skilled workers. The following information is available:

Fixed costs relating to material handling amount to $100,000.

The cost driver for these costs is the volume of material purchased.

General fixed costs, absorbed on the bases of labour hours, amount to $180,000.

Using activity-based costing, what is the total fixed overhead amount to be absorbed into each unit of product B (to the nearest whole $)?

(a) $113

(b) $120

(d) $105

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Management And Cost Accounting

ISBN: 9781473773615

11th Edition

Authors: Mike Tayles, Colin Drury

See More Books

Question Posted: Aug 01, 2022 04:12 AM

See More Questions

Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...
Singha Ltd produces and sells two products, X and Y, using the same type of materials and labor but in different quantities. Budgeted sales units for the next six months (July to December 2022) are...
The Gleason Company, a Canadian division of a large international company, has prepared estimated costs for next year that can be traced to each department as follows: Building and grounds...
What is the main reason the Bike Company needs to report figures separately for its various areas of operation? Choose the correct answer. A Sales requires these figures to plan sales activities. B...
Explain why correlation does not always imply causation. Does causation always imply positive correlation? Explain your answer.
The actual contribution margin per unit will impact the following sales variance: a. Flexible-budget variance b. Market-size variance c. Market-share variance. d. Sales-quantity variance
P Company acquired 100% of the common stock of the S Company for an agreed-upon price of $800,000. The book value of the net assets is $600,000, which includes $50,000 of subsidiary cash equivalents....
The weight of bags of fertilizer is normally distributed, with a mean of 50 pounds and a standard deviation of 6 pounds. What is the probability that a bag of fertilizer will weigh between 45 and 55...
To pay for your child's education, you wish to have accumulated $13,000 at the end of 9 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is...
The COVID-19 pandemic affected companies in the food industry in unique ways, particularly during 2020. Ruth's Hospitality Group (Ticker: RUTH) develops and operates fine dining restaurants under the...
A company uses an activity -based costing system. The company manufactures three products, details of which are given below: Annual inspection costs are $150,000. The inspection cost per unit of...
Jewel Co. is setting up an online business importing and selling jewellery headphones. The cost of each set of headphones varies depending on the number purchased, although they can only be purchased...
How do you prepare for a terrorist threat?
Convex Productions produces full-length motion pictures for distribution worldwide. Convex has just purchased the rights to a movie script entitled Native Sun, which it intends to develop as its next...
You are visiting the Engineering Office of Denton Hospital, as part of a consulting project. You notice some charts on one wall which look familiar to you: One of the employees notices you reading...
Richmond Clinic has obtained the following estimates for its costs of debt and equity at different capital structures: What is the firms optimal capital structure? (Hint: Calculate its corporate cost...
Suppose a sample yields estimates $\widehat{\theta}_{1}=5, \widehat{\theta}_{2}=3$, se $\left[\widehat{\theta}_{1} ight]=2$, and se $\left[\widehat{\theta}_{2} ight]=1$ and the correlation...
Helium expands in a nozzle from $0.8 \mathrm{MPa}, 500 \mathrm{~K}$, and negligible velocity to $0.1 \mathrm{MPa}$. Calculate the throat and exit areas for a mass flow rate of \(0.34 \mathrm{~kg}...
Find a power series representation for the function and determine the radius of convergence. f (x) = 1 + x/(1 - x) 2
Draw the appropriate control flow graph of the given pseudocode.Make sure to only use one number for blocks of code which are all sequential and when the first line is executed, all of those lines...
What is costing system refinement? Describe three guidelines for refinement.
Give an example of how, under absorption costing, operating income could fall even though the unit sales level rises.
Critics of absorption costing have increasingly emphasized its potential for leading to undesirable incentives for managers. Give an example.
Calculate Social Security taxes, Medicare taxes and FIT for Jordon Barrett. He earns a monthly salary of $11,100. He is single and claims 1 deduction. Before this payroll, Barretts cumulative...
Bass Accounting Services expects its accountants to work a total of 26,000 direct labor hours per year. The company's estimated total indirect costs are $ 260,000. The company uses direct labor hours...
The Balance Sheet has accounts where the accountant must make estimates. Some situations in which estimates affect amounts reported in the balance sheet include: Allowance for doubtful accounts....

A company makes two products using the same type of materials and skilled workers. The following information

Question:

Budgeted volume (units) Material per unit ($) Labour per unit ($) Product A 1,000 10 5 Product B 2,000 20 20

Step by Step Answer:

b 120 The total fixed overhead amount to be absorbed into each unit of ...View the full answer

Management And Cost Accounting

Students also viewed these Business questions