Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dreamin of Summer Co. makes all things beach-chairs, umbrellas, towers, coolers, toys, etc. With the next summer season approaching they are evaluating the two beach

image text in transcribed
Dreamin of Summer Co. makes all things beach-chairs, umbrellas, towers, coolers, toys, etc. With the next summer season approaching they are evaluating the two beach toy packages that they currently sell: the Basic and the Deluxe All toys are made using plastic molding machines resins are heated and injected into the molds for each toy, then allowed to cool. Dreamin of Summer uses an activity based costing system. Since they belleve this more refined system helps them to understand their costs better. See below for relevant problem data for the activity based costing system Some relevant information for the past year: (unit means one bag of toys) Basic Number of units sold Deluxe 350.000 300,000 Sales price per unit $7.00 $13.00 Direct materials per unit 50.25 $1.00 Direct labor dollars per unit $0.50 $3.00 In addition, Dreamin of Summer decides to break total Indirect cos into the following cost pools, with corresponding cost-allocation bases: Basic Deluxe Molding machine operations $1,200,000 Molding machine hours per unit 4 7 Ordering costs $100,000 Total number of orders for each product 250 750 (not per unit, for each product in total) Shipping Costs $200,000 Pounds per unit $950,000 Other Administrative Costs Increase with direct tabor dollars $2450.000 Total Under the ABC system, what amount of administrative costs are allocated to each unit of the Deluxe package round all rates to 2 decimal places/ O $0.00 50444 3.100 52.64

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

Practical Pension Scheme Accounting

Authors: Shona Harvie, Joanne Scriven, Phil Spary

2nd Edition

1526508974, 9781526508973

More Books

Students also viewed these Accounting questions

Question

List the activities involved in employer-designed HRD programs

Answered: 1 week ago