Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

not by handwriting please and asap Apple Company phones. The company uses a normal cost system and overhead costs are currently allocated using a plant-wide

not by handwriting please and asap

image text in transcribed

image text in transcribed

Apple Company phones. The company uses a normal cost system and overhead costs are currently allocated using a plant-wide overhead rate based on direct labor hours. Outside cost consultants have recommended, however, that the company use activity-based costing to charge overhead to products. The company expects to produce 4,000 computer parts and 2,000 cell phones in 2019. Each computer part requires two direct labor hours to produce and each cell phone requires-half hour to produce. The direct material and direct labor costs included in the two products are as follows: Computer Item Part Cell-Phone Direct Material (per S30 $17 unit) Direct Labor (per unit) $16 $4 Budgeted (Estimated) Total Factory Overhead Data For 2019: Activity Budgeted Overhead Dollars $80,000 Estimated Volume Level 20 setups Production Setups Material Handling $70,000 5,000 lbs. $120.000 Packaging and Shipping 6,000 boxes Total Factory Overhead $270,000 Based on an analysis of the three overhead activities, it was estimated that the two products Based on an analysis of the three overhead activities, it was estimated that the two products would require these activities as follows in 2019: Activity Computer Parts 5 setups Cell Phones Overall Totals 20 setups Production Setups 15 setups Material Handling 1,000 lbs. 4,000 lbs. 5,000 lbs. Packaging and Shipping 4,000 boxes 2,000 boxes 6,000 boxes Required: Calculate the cost for the two products using an activity-based costing system (ABC)

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_2

Step: 3

blur-text-image_3

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

Using Equity Audits To Create Equitable And Excellent Schools

Authors: Linda E. Skrla, Kathryn B. McKenzie, James Joseph Scheurich

1st Edition

1412939321, 978-1412939324

More Books

Students also viewed these Accounting questions