Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NEED SOME HELP IN THIS: VI. The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related

NEED SOME HELP IN THIS:

VI.The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.

ActivityCost Driver

Activity 1Direct labor cost

Activity 2Direct materials cost

Activity 3Kilowatt hours

Three types of products are produced.Direct costs and cost-driver activity for each product for a month are as follows:

Product AProduct BProduct C

Direct materials cost$125,000$50,000$75,000

Direct labor cost$1,000$3,000$2,000

Direct labor hours5001,5001,000

Kilowatt hours325,00075,000200,000

Indirect production costs for the month are as follows:

Activity 1$18,000

Activity 225,000

Activity 360,000

Total$103,000

Required:Compute the total Indirect Production Costs allocated to ProductA.(10 pts.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions