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Mogoul Manufacturing Company makes two different products, M and N. The companys two departments are named after the products; for example, Product M is made
Mogoul Manufacturing Company makes two different products, M and N. The companys two departments are named after the products; for example, Product M is made in Department M. Mogouls accountant has identified the following annual costs associated with these two products.
Financial Data: | |
Salary of vice president of production division | $200,000 |
Salary of supervisor Department M | 80,000 |
Salary of supervisor Department N | 60,000 |
Direct materials cost Department M | 300,000 |
Direct materials cost Department N | 420,000 |
Direct labor cost Department M | 240,000 |
Direct labor cost Department N | 680,000 |
Direct utilities cost Department M | 120,000 |
Direct utilities cost Department N | 24,000 |
Factory utilities | 36,000 |
Production supplies | 36,000 |
Fringe benefits | 138,000 |
Depreciation | 720,000 |
Nonfinancial data | |
Machine hours Department M | 5,000 |
Machine hours Department N | 3,000 |
Units produced of Product M | 2,000 |
Units produced of Product N | 4,000 |
What is the total indirect cost?
Do not enter dollar signs or commas in your answers.
Question 2 1 pts Which one of the following cost drivers is likely to have the weakest cause and effect relationship with factory utilities cost? number of departments direct labor hours machine hours number of units produced Question 3 1 pts Determine the estimated indirect unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs. Round your answer to the nearest whole dollar. Do not enter dollar signs or commas in your answers. Question 4 1 pts What is the direct cost per unit of products made in Department M? Question 5 1 pts What is the estimated total unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs? Question 6 1 pts If Mogoul prices its products at cost plus 40 percent of cost, what price per unit must it charge for Product M? $781 $558 $223 O $370 Question 2 1 pts Which one of the following cost drivers is likely to have the weakest cause and effect relationship with factory utilities cost? number of departments direct labor hours machine hours number of units produced Question 3 1 pts Determine the estimated indirect unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs. Round your answer to the nearest whole dollar. Do not enter dollar signs or commas in your answers. Question 4 1 pts What is the direct cost per unit of products made in Department M? Question 5 1 pts What is the estimated total unit cost of products made in Department Mif units produced is used as the cost driver for all indirect costs? Question 6 1 pts If Mogoul prices its products at cost plus 40 percent of cost, what price per unit must it charge for Product M? $781 $558 $223 O $370
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