Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jamesway Corporation makes two types of replacement fittings for heavy construction equipment-screws and bolts. Data regarding the two products follow: Direct Labour Hours per Unit

image text in transcribed
image text in transcribed
Jamesway Corporation makes two types of replacement fittings for heavy construction equipment-screws and bolts. Data regarding the two products follow: Direct Labour Hours per Unit 8.20 0.10 Screws Bolts Annual Production 40,eee units 60,000 units Additional information about the company follows: a. Screws require 58.30 in direct materials per unit, and bolts require $6.30, b. The direct labour wage rate is $50 per hour c Screws are more complex to manufacture than boits, and they require special equipment d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labour-hours Estimated Overhead Cost $ 21,00 $184.000 $336,000 Screws 80 4,000 7.000 Activity Bolts 48 e 14,000 Total 120 4,000 21.ee Required 1. Compute the activity rate for each activity cost pool Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH 2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labour. (Round your answers to 2 decimal places.) Screws Bolts Direct materials Direct labour Overhead Unit cost

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

The Internal Auditors Guide To Risk Assessment

Authors: Rick A. Wright Jr.

2nd Edition

1634540158, 9781634540155

More Books

Students also viewed these Accounting questions

Question

Explain the need for a critical analytical approach to studying HRM

Answered: 1 week ago