Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ASAP Green Furniture (GF) manufactures a variety of furniture for household use and just two items for office se desks and cabinets. The production process

ASAP
image text in transcribed
image text in transcribed
Green Furniture (GF) manufactures a variety of furniture for household use and just two items for office se desks and cabinets. The production process for desks and cabinets is similar, although machines must be retooled for each product. Both materials and labour costs are directly traceable to individual products, however overhead is a common cost and allocated using direct labour hours as the allocation base GF's accountant is considering the use of activity based costing (ABC) and has suggested evaluating the system by applying it to the two office use products (desks and cabinets) The following data are available for a typical quarter, Activity Cast Pool Parts recents Machining Assembly Quality control Direct materials Direct labour Activity Base Number of parts Hachine hours Unite produced Units tested activity Rate $ 2.00 per part $12.00 per machine-tour 5 1.00 per unit 5 3.00 per unit 1,250 parts 270 min.hu Desks 1,800 parts 10 machines 200 units 90 units 5. 4.500 $10,800 5 2.500 $10.50 Each product consumed 540 direct labour hours Required: 1. Determine the total manufacturing cost and cost per unit for each of the two product lines for the quarter, using activity based costing to allocate overhead costs (Round "Cost per unit" answers to 2 decimal places Dusters Total manufacturing cost Cost per un Each product consumed 540 direct labour-hours Required: 1. Determine the total manufacturing cost and cost per unit for each of the two product lines for the quartet, using activity based costing to allocate overhead costs, (Round "Cost per unit" answers to 2 decimal places.) Duster Cabinets Total manufacturing cost Cost per unit 2. Redo the above using direct labour hours as the allocation base (Round "Cost per unit" answers to 2 decimal places Mops Total manufacturing cost Cost per unit

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

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions

Question

What are the 3 components of data governance?

Answered: 1 week ago