Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hippity Hoppity Brew is a manufacturer of Small, Medium and Large size malting equipment for use in craft breweries across the United States and Canada.

Hippity Hoppity Brew is a manufacturer of Small, Medium and Large size malting equipment for use in craft breweries across the United States and Canada. They are implementing an activity based cost (ABC) system and have compiled the following indirect cost information. Estimated Cost Cost Driver Est Total Cost Driver 1500 Hours Cost Pool Equipment Maintenance Production Facility Costs Order Processing Costs Engineering Changes $58,813 Machine Hours $84,262 Footprint (sqft) $15,261 Num of Orders $34,678 Num of Changes $18,678 Warranty Claims 20000 Square Feet 200 Orders 50 Changes Customer Relations 30 Claims During the period, the Medium sized equipment line at Hippity Hoppity Brew used 650 machine hours, used 6200 square feet of floor space, received 63 orders, experienced 13 engineering changes and had 8 warranty claims. $121,058 of direct labor and $72,300 of direct material were charged towards the Medium sized equipment line during the year. Under the ABC system, how much indirect cost was charged to the Medium line during the year? round your answer to the whole dollar

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

Acca Financial Reporting

Authors: BPP Learning Media

1st Edition

1509784888, 978-1509784882

More Books

Students also viewed these Accounting questions

Question

Explain how the new process improves capacity for the MRI machine.

Answered: 1 week ago

Question

2. Discuss the steps in preparing a manager to go overseas.

Answered: 1 week ago

Question

8. Measure the effectiveness of the succession planning process.

Answered: 1 week ago