Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help with this problem A company has two products: standard and deluxe. The company expects to produce 35,494 Standard units and 40,198 Deluxe units.
Need help with this problem
A company has two products: standard and deluxe. The company expects to produce 35,494 Standard units and 40,198 Deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Budgeted Standard Deluxe OH Cost $ 93,000 2,500 Purchases 5,250 Purchases Activity 1: Purchasing Activity 2: Designing $ 92,000 4,500 Designs 5,500 Designs Activity 3: Shipping $ 87,000 3,000 Orders 2,800 Orders Make a Job Cost Sheet for the Standard Units. Use the following Direct Materials and Direct Labor information. - Direct Materials $5,876 - Direct Labor $6,150 For Overhead, computer overhead rates for each of the three activities. Hint, you will divide each activity's budgeted cost by the TOTAL amount of that activity's cost driver. So you will need to add Purchases for Standard and Deluxe to get the total denominator for that activity. (Round activity rate and cost per unit answers to 2 decimal places.) Your Job Cost Sheet will include: Direct Materials + Direct Labor + Overhead for Purchasing + Overhead for Designing + Overhead for Shipping = Total Job Cost / Units Produced Per Unit Cost 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