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HI there, i am looking for help with the attached accounting problem. thank you! Dillon Corporation manufactures computer monitors. The company uses a job order
HI there, i am looking for help with the attached accounting problem. thank you!
Dillon Corporation manufactures computer monitors. The company uses a job order costing system, using a plant-wide rate for allocating overhead costs. The current cost method allocates overhead on the basis of direct manufacturing labor hours, using a rate of $100 per labor hour. The plant manager is considering switching over to an activity-based costing system and identifies the following production activities and their cost drivers (these activities are performed for a batch of 99 monitors). Activities Material handling Assembly Inspection Cost driver Number of parts Labor hours Minutes at inspection station Allocation Rate $2 per part $20 per hour $3 per minute What are the overhead costs per one unit of monitors if the activity-based costing system is used and a batch of 99 monitors are produced? The batch requires 400 parts, 8 direct manufacturing labor hours, and 10 minutes of inspection time. $8 per monitor O $13 per monitor O O $10 per monitor $12 per monitor O
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