IV. The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities
Question:
IV.The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.
ActivityCost Driver
Activity 1Direct materials cost
Activity 2Kilowatt hours
Activity 3Direct labor cost
Three types of products are produced.Direct costs and cost-driver activity for each product for a month are as follows:
Product AProduct BProduct C
Direct materials cost$150,000$80,000$100,000
Direct labor cost$16,000$20,000$12,000
Direct labor hours2,0002,5001,500
Kilowatt hours200,00090,00060,000
Indirect production costs for the month are as follows:
Activity 1$100,000
Activity 2150,000
Activity 350,000
Total$300,000
Required:Compute the total Indirect Production Costs allocated to ProductC.(10 pts.)
Introduction To Management Accounting
ISBN: 9780273737551
1st Edition
Authors: Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg