Question
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead): PlusMaxUnits
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead):
PlusMaxUnits produced20016,400Batch size (units)10400Number of setups2041Direct labor hours per unit55Total direct labor hours1,00082,000
Cost per setup$1,660Total setup cost$101,260
Using direct labor hours as the allocation base, the setup cost portion of overhead that is allocated to each unit of product for Plus and Max, respectively is:
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Accounting Information Systems Controls And Processes
Authors: Leslie Turner, Andrea B Weickgenannt, Mary Kay Copeland
4th Edition
1119577810, 9781119577812
