Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has two products: standard and deluxe. The company expects to produce 35,166 Standard units and 35,071 Deluxe units. It uses activity-based costing and

image text in transcribed
image text in transcribed
A company has two products: standard and deluxe. The company expects to produce 35,166 Standard units and 35,071 Deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Budgeted Standard Deluxe OH Cost Activity 1: Purchasing $ 93,000 2,500Purchases 5,250 Purchases $ 92,000 4,500 Designs 5,500 Designs Activity 2: Designing Activity 3: Shipping $ 87,000 3,000 Orders 2,800 Orders Required: Make a Job Cost Sheet for the Standard Units. Use the following Direct Materials and Direct Labor information. - Direct Materials $6,513 - Direct Labor $7,457 For Overhead, computer overhead rates for each of the three activities. Hint, you will divide each activity's budgeted cost by the TOTAL amount of that activity's cost driver. You will have to calculate 3 different rates, one for each activity. (Round activity rate and cost per unit answers to 2 decimal places.) Your Job Cost Sheet will include: Direct Materials + Direct Labor + Overhead for Purchasing + Overhead for Designing + Overhead for Shipping Total Job Cost / Units Produced = Per Unit Cost The answer you type in will be the Per Unit Cost of the Standard Units. Round your answer to the nearest 2 decimal places

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

Accounting For Inventory

Authors: Steven M. Bragg

2nd Edition

1938910648, 9781938910647

More Books

Students also viewed these Accounting questions

Question

What is job enlargement ?

Answered: 1 week ago

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago