Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Koko Company produces and sells two products: AC and DC. Information concerning the expected production of each product and the expected total direct labor-hours (DLHs)
Koko Company produces and sells two products: AC and DC. Information concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output are as follows: Expected Direct labor-hours Total direct production per unit labor-hours 3,200 4 AC DC Total direct labor-hours 400 8201 6,480 The direct materials cost per unit is $300 for AC and $290 for DC. The direct labor rate is $12 per DLH. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine settings Machine setups Estimated Expected Activity Activity Measures Overhead Cost AC DC Total DLHS $54,108 3,200 3,280 6,480 Settings $9,000 350 400 750 MHS $60,000 3,200 3,000 ? Required: (a) By using a vertical table format to compute all the activity rates (rounded to 2 decimal places). (3 marks) (6) By using a vertical table format to compute how much overhead cost per unit will be assigned to each product (AC and DC) (rounded to 2 decimal places). 9. (5 marks) (c) By using a vertical table format to compute the unit product cost of each product (AC and DC) (rounded to 2 decimal places). (4 marks)
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