P25-1B Nouveau Technology's Desktop PC Department, which assembles and tests printed circuit (PC) boards, reports the following
Question:
P25-1B Nouveau Technology's Desktop PC Department, which assembles and tests printed circuit (PC) boards, reports the following data regarding PC Board XR1: Direct materials cost Activity costs allocated Manufacturing product cost. $45.00 ? ? The activities required to build the PC boards are as follows: Allocation Base Number of raw PC boards Cost Allocated to Each Board Start station Dip insertion Number of dip insertions Manual insertion Number of manual insertions Wave solder Backload Test 1 x $ 0.90 $0.90 20 x $ 0.15 => ? 6 x $ ? = 2.40 Number of boards soldered Number of backload insertions IX $ 3.50 3.50 ? x $ 0.70 2.80 Delect analysis Total Standard time each board is in test activity (hr) Standard time for defect analysis and repair (hr) 0.25 $80.00 = ? 0.16 XS ? = 8.00 2 Required 1. Fill in the blanks in both the opening schedule and the list of activities. 2. How is labor cost assigned to products under this product costing system? 3. Why might managers lavor this ABC system instead of the older system that allocated all conversion costs on the basis of direct labor?
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones