Question
ABC Method for Calculating Overhead You have to calculate the machine hours. Each unit takes 2 hours to make. Problem # 3 Direct materials 325,400
ABC Method for Calculating Overhead
You have to calculate the machine hours. Each unit takes 2 hours to make.
| Problem # 3 | ||
| Direct materials | 325,400 | |
| Materials handling | 35,145 | |
| Assembly | 58,020 | |
| Setup | 13,400 | |
| Product Testing | 3,500 | |
| Overhead | 15,860 | |
| Output | 41,500 | units |
| Direct Labor Hours | 3,600 | |
| Setups | 420 | |
| Product tests | 70,000 | |
| Each unit requires two machine hours | ||
| Materials handling based on direct material cost | ||
| Product testing based on number of tests | ||
| Overhead based on machine hours | ||
| Assembly based on direct labor hours | ||
| Setups based on the number of setups | ||
| Job 153: | ||
| Completed | 1,850 | units |
| Direct Materials | 12,400 | |
| Direct labor hours | 83 | |
| Setups | 6 | |
| Tests | 2,584 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
