Question
Carpenter Corporation manufactures two products, Product A and Product B. The company uses an Activity Based Costing System that assigns costs based on activity cost
Carpenter Corporation manufactures two products, Product A and Product B.
The company uses an Activity Based Costing System that assigns costs based on activity cost drivers.
The following data is available:
|
| Product A | Product B | Total |
| Direct Materials Cost (per unit) | $70 | $140 |
|
| Direct Labor Costs (per hour) | $20 | $30 |
|
| Supporting Labor Costs |
|
| $16,000 |
| Utilities and Repairs Costs |
|
| $96,000 |
| Order Processing Costs |
|
| $24,560 |
| Direct Labor (Production) Hours (per unit) | 2 | 3 |
|
| Production Units | 2,400 | 800 | |
| Supporting Labor (hours) | 600 | 200 | |
| Customer Orders | 48 | 32 |
Compute the Total Manufacturing Costs for Product A using the Activity Based Costing System.
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Auditing And Assurance Services
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
12th Edition
0136128270, 9780136128274
