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$ Nichols Inc, manufactures remote controls. Currently the company uses a plant - wide rate for allocating manufacturing overhead. The plant manager is considering switching
$ Nichols Inc, manufactures remote controls. Currently the company uses a plant - wide rate for allocating manufacturing overhead. The plant manager is considering switching - over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: Activities Cost driver Allocation Rate Material handling Number of parts $4 per part Assembly Labor hours $20 per hour Inspection Time at inspection station $10 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $40 per labor hour What are the indirect manufacturing costs per remote control assuming an activity - based - costing method is used and a hath Anna nastala na nended The haink enn 100 na dient mannsins Inhanh minsan al O A. $13.75 per remote control O B. $1.00 per remote control OC. $550.00 per remote control D. $34.00 per remote control department to identify the primary production activities and their cost drivers which are as follows: Activities Cost driver Allocation Rate Material handling Number of parts S4 per part Assembly Labor hours $20 per hour Inspection Time at inspection station $10 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $40 per labor hour. What are the indirect manufacturing costs per remote control assuming an activity - based - costing method is used and a batch of 40 remote controls are produced? The batch requires 100 parts, 6 direct manufacturing labor hours, and 3 minutes of inspection time. O A. $13.75 per remote control O B. $1.00 per remote control O C. $550.00 per remote control O D. $34.00 per remote control
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