Question
1. A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for
1. A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:
| Budgeted Activity | |||
| Activity Cost Pool | Budgeted Cost | Product A | Product B |
| Activity 1 | $115,500 | 3,600 | 3,400 |
| Activity 2 | $81,220 | 5,700 | 6,700 |
| Activity 3 | $113,400 | 3,100 | 5,900 |
| Annual production and sales level of Product A is 54,700 units, and the annual production and sales level of Product B is 34,850 units. What is the approximate overhead cost per unit of Product A under activity-based costing? |
A. $10.28
B. $6.55
C. $16.50
D. $3.90
E.$2.48
2. Rafner Manufacturing identified the following data in its two production departments.
| Assembly | Finishing | |||||
| Manufacturing overhead costs | $ | 1,200,000 | $ | 600,000 | ||
| Direct labor hours worked | 12,000 | DLH | 20,000 | DLH | ||
| Machine hours used | 6,000 | MH | 16,000 | MH | ||
what is the companys single plantwide overhead rate based on direct labor hours?
what is the companys single plantwide overhead rate based on machine hours?
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Management And Compliance Audit A Complete Guide
Authors: Gerardus Blokdyk
2020 Edition
0655927727, 978-0655927723
