Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Activity Cost Pool Total Cost Total Activity Assembling $100726 16365 machine hours Job Support $32748 1833 jobs Customer support $5212 364 clients Other $102496 Not

Activity Cost Pool Total Cost Total Activity

Assembling $100726 16365 machine hours

Job Support $32748 1833 jobs

Customer support $5212 364 clients

Other $102496 Not applicable

The company uses an activity-based costing system for its overhead costs.

One particular customer requested 37 jobs during the year for a total of 125 units, requiring a total of 197 machine hours. Each unit requires $0.47 in direct materials and $1.65 in direct labor. The customer was charged $3731 for these jobs.

Compute the customer margin if they used traditional costing instead of ABC on the basis of machine hours. Round ONLY your final answer to the nearest whole dollar amount. Do not round intermediate calculations.

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

Creative And Innovative Auditing

Authors: Jeffrey Ridley

1st Edition

1472474627, 9781472474629

More Books

Students also viewed these Accounting questions

Question

In what sense can it be said that a tree is solidified air?

Answered: 1 week ago

Question

How is a futures contract settled?

Answered: 1 week ago

Question

=+e. Storytelling present product in a story.

Answered: 1 week ago