Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Norton Inc. makes boxes. The company has the following cost pools and drivers, with budgeted amounts for 2022. Cost Pool Budgeted Cost Driver Budgeted
2. Norton Inc. makes boxes. The company has the following cost pools and drivers, with budgeted amounts for 2022. Cost Pool Budgeted Cost Driver Budgeted Cost Cost Driver Rate Overhead lCost Driver Purchasing, $200,000 Direct material $1,000,000 $0.20 per direct Storage, and dollars material dollar Material Handling Engineering and $100,000 Hours in Design 5.000 hours 520 per design Product Design hour Machine Setup $20,000 Production runs 1.000 runs 570 per run Depreciation and $650,000 Machine Hours 100,000 hours $6.50 per Maintenance. machine hour and Other Moreover, the budgeted direct labor hours for the year were 4.000 hours. Direct labor cost was $32.00 per direct labor hour. Two production orders had the following actual costs and requirements: 20.000 units, Box CS2 10,000 units, Box W29 Direct labor hours 42 21 Direct material cost $40,000 53 5.000 Hours in design 10 25 Production runs 2 4 Machine hours 24 20 a. Find the cost per unit for each product using ABC. b. Find the cost per unit for each product using a single cost driver. direct labor hours
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started