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4.5pts Question 30 Camarillo Company uses a volume-based costing system that applies overhead cost based on machine hours at $15 per machine hour. The Company
4.5pts Question 30 Camarillo Company uses a volume-based costing system that applies overhead cost based on machine hours at $15 per machine hour. The Company is considering adopting an activity-based costing system with the following data: Activity Cost Driver Rate Materials handling Pounds of material $1.20 Number of parts Lathe work 0.80 Number of machine hours Milling 6.00 Number of turns Grinding 0.10 Testing |Number of units tested The two jobs processed in the month of May had the following characteristics: Job A Job B Direct material $12,000 $60,000 Direct labor $4,000 $12,000 Pounds of material 800 1,600 Number of parts 300 1,500 Number of turns 10,000 30,000 Number of machine hours 240 800 Number of units in each job 160 All units tested 40 Q. Using ABC, the cost per unit for Job B is: $75.00 $77.25 $525.00 $527.25 Question 31 4.5 pts Camarillo Company uses a volume-based costing system that applies overhead cost based on machine hours at $15 per machine hour The Company is considering adopting an activity-based costing system with the following data: Activity Cost Driver Rate Materials handling Pounds of material $1.20 Number of parts Lathe work 0.80 Number of machine hours Milling 6.00 Grinding Number of turns 0.10 Number of units tested Testing The two jobs processed in the month of May had the following characteristics: Job A Job B Direct material $12,000 $60,000 Direct labor $4,000 $12,000 Pounds of material 800 1,600 Number of parts 1.500 300 Number of turns 30,000 10,000 Number of machine hours 240 800 Number of units in each job 160 All units tested 40 Q. The difference in total cost between ABC and the volume-based costing system for Job A is: $400 $360 $500 $760
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