Question
ABC Manufacturing produces two models of heating stoves: pellet and wood-burning. The following information about the costs to produce the companys products has been provided.
ABC Manufacturing produces two models of heating stoves: pellet and wood-burning. The following information about the costs to produce the companys products has been provided.
CategoryEstimated CostCost DriverPellet StoveWood Burning StoveUnit-Level$125,000Labor Hours750500Batch-Level$75,000Inspections3020Product-Level$35,000Storage Space3500sq. ft2100sq.ftFacility-Level$165,000Machine Hours9,0006,000
a. Ifallcosts are allocated based on machine hours, what is the rate per machine hour?
b. Ifallcosts are allocated based on machine hours, what is the amount allocated to pellet stoves?
c. If ABC uses activity based costing based on the cost pools above, what is the rate forunit-level costs?
d. If ABC uses activity based costing based on the cost pools above, what is the rate forbatch-level costs?
e. If ABC uses activity based costing based on the cost pools above, what is the rate forproduct-level costs?
f. IfABC uses activity based costing based on the cost pools above, what is the rate forfacility-level costs?
g. If ABC uses activity based costing based on the cost pools above, what amount is allocated towood burning stoves?
Label and place your final answer for a-g at the top of the answer box.Then after the answer to g, label and show your work for each part of the question.Just show me numbers - that is usually enough for me to follow your logic.
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