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Font > Select Styles Edang Voice Nash Inc. located in Venice, I manufactures two types of halogen spotlights. Both types of halogen spotlights can be
Font > Select Styles Edang Voice Nash Inc. located in Venice, I manufactures two types of halogen spotlights. Both types of halogen spotlights can be mounted on the bow of any watercraft vessel and operated remotely from the vessel's control station. Justin Hayward, company president, is concerned with the apparent lack of controls over cost incurrence. Nash Inc. has always used a plant-wide rate for allocating manufacturing overhead to its products. However, both the HS-1 model and HS-A model cost substantially more then some competitor's retail prices and substantially less than others. Since you are the new company controller, (The previous controller retired to devote more time to fishing.) you have been approached by the president and asked to develop a better cost allocation method. With the assistance of the plant manager, the accounting department has been able to establish the following relationships between production activities and the indirect costs of the activities for the month just ended October 31, 2029. Activity Soldering (# of solder joints) Machine Stamping (machine-hrs) Assembly (units began) Quality Control (# of inspections) Total traceable costs Traceable Costs $1899,072 $1,389,248 $2,400,000 $2,665,600 $8,353,920 HS-1 646,800 13,328 51,000 30,800 HS-A 1,990,800 11,480 49,000 47,600 Total 2,637,600 24,808 100,000 78,400
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