Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need it in half and hour plz ABC Inc. produces a single product and manufactured 30.000 units last year. The company budgeted the following overhead
need it in half and hour
ABC Inc. produces a single product and manufactured 30.000 units last year. The company budgeted the following overhead costs for the year Indirect Factory Wages: Factory Utilities: Factory Depreciation: $200,000 $ 50,000 $ 50,000 Direct manufacturing costs per unit are $50. The company uses any activity based costing system which compiles costs into 3 cost pools, machining milling arid assembly. The costs allocated to these activity cost pools break down as follows Usage: Cost: Machining Milline Assembly Indirect Factory Wages 30% 20% Factory Utilities: Factory Depreciation: sex 40% 105 40% 90% 20% 0% The following cost drivers are used for each of the following activity cost pools Machining Machine Hours . Milling: Milling Hours Assembly Direct Labour Hours Practical capacity for each of the cost pools are shown below Machini Mares Machining: 60,000 Machine Hours. Milling: 107000 Milling Hours. Assembly: 12.500 Direct Labour Hours Actual Usage was as follows Machining: 60,000 Machine Hours Milling: 80,000 Milling Hours Assembly: 15,000 Direct Labour Houes. Each unit requires a budgeted 2 Machine Hours, 1 Milling Hour and 4 Direct Labour Hours ABC's policy is to charge $84 per unit. The mark-up (in dollars) per unit of product using traditional costing Is (use budgeted machine hours as a base Multiple Choice $27 D $34 $27 $34 O 50 524 plz
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