Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In a department, 4,200 units are completed and transferred out and 650 remain in ending WIP at 70% complete. If an equivalent unit costs $6.00
In a department, 4,200 units are completed and transferred out and 650 remain in ending WIP at 70% complete. If an equivalent unit costs $6.00 for direct materials, what is the value of materials transferred out?
Question 2 options:
$25,200 | |
$2,730 | |
$3,900 | |
$17,640 |
Montreal Woodworking Inc. uses activity based costing and has had the following activities, estimated indirect activity costs, and allocation bases:
Activities | Indirect Activity Costs | Allocation Base |
Account inquiry (hours) | $125,000 | 25,000 |
Account billing (lines) | $80,000 | 8,000 |
Account verification (accounts) | $75,000 | 5,000 |
Correspondence (letters) | $36,000 | 6,000 |
The above activities are used by Departments 123 and ABC as follows: | ||
Dept. 123 | Dept. ABC | |
Account inquiry (hours) | 600 | 500 |
Account billing (lines) | 2,700 | 4,200 |
Account verification (accounts) | 3,100 | 1,800 |
Correspondence (letters) | 1,400 | 1,750 |
1. What is the cost per driver unit for the account inquiry activity? |
2. What is the total cost for account inquiries in Dept. ABC? |
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