Question
Odette Manufacturing produces three products: Widget A, Widget B, and Widget C The following information is available for each product. A B C Direct material
Odette Manufacturing produces three products: Widget A, Widget B, and Widget C The following information is available for each product.
|
| A | B | C |
| Direct material cost per unit | $2.00 | $8.00 | $10.00 |
| Direct labor cost per hour | $15.00 | $16.75 | $18.00 |
Odette Manufacturing presently applies overhead using a predetermined rate based on direct labor hours. Estimated Direct Labor hours for the year are 132,026.
The product leader for Widget B has suggested that Odette Manufacturing switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for the year:
| Activity | Recommended Cost Driver | Estimated Cost | Estimated Cost Driver Units |
| Ordering Cost | Purchase Orders | $33,912 | 1256 Purchase Orders |
| Machine Operations | Machine Hours | $1,425,000 | 12500 Hours |
| Environmental Compliance | Compliance Test | $125,400 | 110 Test |
|
| Total OH Cost | $1,584,312 |
|
What is the cost driver allocation rate for Machine Operations?
| a. | $0.04 | |
| b. | $0.01 | |
| c. | $114 | |
| d. | $12 |
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AWS Security Cookbook Practical Solutions For Managing Security Policies Monitoring Auditing And Compliance With AWS
Authors: Heartin Kanikathottu
1st Edition
1838826254, 978-1838826253
