Question
Doggie Pawz produces two models of dog beds: rectangle and circle. The following information about the costs to produce the companys products has been provided.
Doggie Pawz produces two models of dog beds: rectangle and circle. The following information about the costs to produce the company’s products has been provided.
| Category | Estimated Cost | Cost Driver | Rectangle | Circle |
| Unit-Level | $293, 000 | Labor Hours | 200 | 300 |
| Batch-Level | $45, 000 | Inspections | 19 | 15 |
| Product-Level | $390,000 | Storage Space | 2900 sq. ft | 3700 sq.ft |
| Facility-Level | $125,000 | Machine Hours | 4,000 | 7,000 |
a. If all costs are allocated based on machine hours, what is the rate per machine hour?
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
