Question
28)A company allocates engineering costs associated withComputer-Aided-Design (CAD) of$200,000 on the basis of total number of components of20,000. A product line requires5,000 engineeringhours, 10,000components, and
28)A company allocates engineering costs associated withComputer-Aided-Design (CAD) of$200,000 on the basis of total number of components of20,000. A product line requires5,000 engineeringhours, 10,000components, and its total production volume is1,000 units. The CAD costs allocated to this product line are________.
A.$20 per unitB.$40 per engineering hourC.$10,000 per componentD.$100,000E.$10 per unitStep by Step Solution
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Managerial Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
12th Edition
1133952402, 978-1133952404
