Question
Help Please I don't know how to solve this problem !! This question is about Activity Based Costing. The Peggy Playground produces children's swing-sets. Produce
Help Please I don't know how to solve this problem !!
This question is about Activity Based Costing.
The Peggy Playground produces children's swing-sets.
- Produce swing-sets 4,500
- machine hours require 1,500 and also required four "set-ups" of equipment.
- the final inspection required 75 hours of inspection activity
- estimated overhead $25 per machine hr,
- Set up (per set up) $3,500
- Inspection $20 hr inspection
- Direct materials-direct labor total $500 per swing-set.
a)determine the amount assigned to a swing-set?
b)and For GAAP, Peggy Playground applies traditional costing methods, and allocates overhead at $40 per machine hour. How much cost would be assigned to the 4,500 swing-sets?-
What is the per unit cost of a swing-set under the traditional approach?
What might explain the higher cost assignment, and how could this influence business decision making?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started