Question
Bass Boss Manufacturing Company manufactures two types of bass boats. Bass Boss provides the following data, pertinent to allocating its annual overhead cost of $435,000:
Bass Boss Manufacturing Company manufactures two types of bass boats. Bass Boss provides the following data, pertinent to allocating its annual overhead cost of $435,000:
Determine the allocation rate for assuming the cost driver is machine hours/unit.
Bass Boss Product | Boss Hog | Boss Bear |
Units per year | 15,000 | 20,000 |
Machine hours/unit | 3.0 | 5.0 |
Materials cost/unit | $1,500 | $2,000 |
Labor cost/unit | $ 800 | $1,000 |
| A. | $5,000 per machine hour | |
| B. | $12.43 per machine hour | |
| C. | $4.35 per machine hour | |
| D. | $3 per machine hour |
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Managerial Accounting The Cornerstone Of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
8th Edition
0357715349, 978-0357715345
