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LUMBERS Inc manufactures spare parts. Currently the company uses a single cost allocation rate for allocating manufacturing overhead. The plant manager is considering switching-over to

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LUMBERS Inc manufactures spare parts. Currently the company uses a single cost allocation rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows Activities Material handling Assembly Inspection Cost driver Number of parts Labor hours Time at inspection station Allocation Rate $1 por part 513 per hour $5.5 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $250 por labor hour What are the indirect manufacturing costs per remote control assuming an activity-based-casting method is used and a batch of 50 remote controls are produced? The balch requires 100 parts 6 direct manufacturing labor hou and 4 minutes of inspection time. Select one a $6.00 per remote control 6 $400 per remote control c $27.00 per remote control d S24.00 per remote control LUMBERS Inc manufactures spare parts. Currently the company uses a single cost allocation rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows Activities Material handling Assembly Inspection Cost driver Number of parts Labor hours Time at inspection station Allocation Rate $1 por part 513 per hour $5.5 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $250 por labor hour What are the indirect manufacturing costs per remote control assuming an activity-based-casting method is used and a batch of 50 remote controls are produced? The balch requires 100 parts 6 direct manufacturing labor hou and 4 minutes of inspection time. Select one a $6.00 per remote control 6 $400 per remote control c $27.00 per remote control d S24.00 per remote control

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