Question
Number of Events Activity Cost driver Traceable Compact Multi-function costs $ Design design orders $50,000 150 50 Set-up number of set-ups $182,000 800 200 Machining
Number of Events Activity Cost driver Traceable Compact Multi-function costs $ Design design orders $50,000 150 50 Set-up number of set-ups $182,000 800 200 Machining machine hours $450,000 30,000 20,000 Packaging packaging hours $150,000 7,000 3,000
| Number of Events | ||||
| Activity | Cost driver | Traceable | Compact | Multi-function |
| costs $ | ||||
| Design | design orders | $50,000 | 150 | 50 |
| Set-up | number of set-ups | $182,000 | 800 | 200 |
| Machining | machine hours | $450,000 | 30,000 | 20,000 |
| Packaging | packaging hours | $150,000 | 7,000 | 3,000 |
B. Using the traditional costing system, calculate the company's predetermined overhead rate.
C. Calculate the total product cost per unit for both products (Compact and Multi-function) using the traditional overhead allocation rate calculated in part (a).
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Accounting, The Financial Chapters
Authors: Tracie Miller Nobles
12th Edition
013449041X, 9780134490410
