Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A. Calculate the indirect cost rate according to traditional costing method (round to 2 decimal places only) C. Calculate the direct cost per unit for

image text in transcribedA. Calculate the indirect cost rate according to traditional costing method (round to 2 decimal places only) image text in transcribedC. Calculate the direct cost per unit for Automatic only.

AMA Desks Pty Ltd produces two types of smart desks that can be raised to different heights: Automatic and Manual. The business started in 2019 and since COVID the sales of Automatic raised desks are increasing. At the moment, AMA Desks Pty Ltd uses the traditional costing method using the direct labour dollars as the cost driver. The following costs are provided below: Direct Materials Direct Labour Dollars Number of Units Automatic $750,000 $200,000 1500 Manual $1,500,000 $350,000 3500 The total manufacturing overhead is $1,400,000 Required: EIDER 34b) B. The allocation of indirect costs, for both products, are: Automatic $509,090.91 Manual $890,909.09 Total Indirect Cost Calculate the total cost per unit for Automatic only. (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

9th Edition

9781259722660

Students also viewed these Accounting questions