Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ORCL Technology uses activity-based costing (ABC) and manufactures two types of processing units, regular and premium. The following information applies to manament's expectations for the

image text in transcribed
image text in transcribed
ORCL Technology uses activity-based costing (ABC) and manufactures two types of processing units, regular and premium. The following information applies to manament's expectations for the coming period: Activity Pool Overhead Costs Activity Driver Materials handling $45,000 90,000 orders 15,000 Machine $300,000 maintenance maintenance hours Setups $270,000 45,000 setups 21,000 Inspections $105,000 inspections The following production estimates are available for the coming period: Regular 8,000,000 processors units Premium 16,000,000 processors units Machine 200,000 hours mhrs Labor hours 400,000 During October, ORCL produced 700,000 regular processing units and the production manager counted 2,000 orders: 1,000 maintenance hours; 2,000 setups; and 2.000 inspections for the regular processor product line. What amount of overhead costs would be assigned to the regular product line in the month of October? $43,000 $25,000 $34,000 The following production estimates are available for the coming period: Regular 8,000,000 processors units Premium 16,000,000 processors units Machine 200,000 hours mhrs Labor hours 400,000 During October, ORCL produced 700,000 regular processing units and the production manager counted 2,000 orders; 1,000 maintenance hours; 2,000 setups; and 2,000 inspections for the regular processor product line. What amount of overhead costs would be assigned to the regular product line in the month of October? $43,000 O $25,000 $34,000 O $48,000 None of the above

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

Forensics Audits And Dreaming

Authors: Helgard Petrus - Coetser

1st Edition

ISBN: 1664260250, 978-1664260252

More Books

Students also viewed these Accounting questions

Question

Develop clear policy statements.

Answered: 1 week ago

Question

Draft a business plan.

Answered: 1 week ago

Question

Describe the guidelines for appropriate use of the direct plan.

Answered: 1 week ago