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In a traditional volume-based cost system, total manufacturing costs are calculated by: A) adding direct material cost and direct labor cost. B) subtracting manufacturing overhead
In a traditional volume-based cost system, total manufacturing costs are calculated by: A) adding direct material cost and direct labor cost. B) subtracting manufacturing overhead from selling price C) adding activity cost, direct material cost, and direct labor cost. D) adding manufacturing overhead cost, direct materials cost, and direct labor cost. 5) Washington, Inc. produces two different products (Product C and Product 2) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which use number of batches as an activity driver. The cost of Machining is $750,000, while the cost of Inspection is $90,000. The activity drivers are used as follows: Product C Product 2 Total 3.000 4.000 Machine hours 1.000 Number of batches 45 15 60 What is the activity rate for Machining? A) $166.67 per machine hour C) $250.00 per machine hour B) $5750.00 per machine hour D) $187.50 per machine hour ) Jefferson, Inc. produces two different products (Product 5 and Product Z) using two diferent activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $500,000, while the cost of Inspection is $30,000. The activity drivers are used as follows: Product 5 Product Z Total 4,800 6,000 1,200 60 Machine hours 80 20 Number of batches D)67% C) 33% What proportion of Machining activity is used by Product 5 B) 20% A) 75%
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