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need help with this question ASAP thank you Matthew Young had been allocating MOH costs to his products using a single plant-wide rate of $13.00
need help with this question ASAP thank you
Matthew Young had been allocating MOH costs to his products using a single plant-wide rate of $13.00 per DL hour. His accountants were now suggesting the use of the following activity-based rates. $20 per production run $7 per direct labor hour $6 per inspection hour If the most recent job required 50 production runs, 330DL hours, and 40 inspection hours, specify how much MOH cost would have been allocated under the previous plant-wide rate, as well as what would be allocated using the suggested ABC rates. Which of these approaches is likely the most accurate? is likely the most accurate. Lisa was evaluating the profitability of her bike shop, which sells bicycles, skateboards, and frisbee golf items. Since the frisbee golf segment was new, she wasn't surprised to see a segment loss after allocating her selling. general, and administrative costs to the three product areas using one rate, based on percentage of sales revenue. After looking more closely, though, she realized the selling, general, and administrative costs came from three main activity areas and could be allocated using more specific rates based on cost drivers as follows. If the frisbee golf line requires 25 hours of management time and 135 square feet of space, and it generates just 6% of total revenues for the shop, how much of these total SGEA costs were initially allocated to the golf line? Costs allocated $ How much of these costs would have been allocated had Lia used activity-based rates? Costs allocated $ Step by Step Solution
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