Question
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost
Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9:
Activity | Budgeted Cost | Cost Base | Cost Base Volume |
Assembly | $864585 | # of DL hours | 36772 |
Inspection | $664181 | # of units | 20927 |
Shipping | $349574 | # of batches | 189 |
Plaid Manufacturing has budgeted to produce 3,000 units of G1. G1 is manufactured in batches of 73 units and requires 16196 hours of direct labour. |
|
What is the overhead cost per unit for product G1? |
Select one:
a. $203.68
b. $626.11
c. $153.04
d. $184.01
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Question text
Barker Inc. has identified the following overhead costs and cost drivers fore the upcoming year:
| ||||
Overhead Item | Expected Cost |
| Cost Driver | Expected Quantity |
Setup costs | $191997 |
| Number of setups | 451 |
Ordering costs | 117974 |
| Number of orders | 3162 |
Maintenance | 354369 |
| Machine hours | 3677 |
Power | 49146 |
| Kilowatt hours | 91356 |
The following are two of the jobs completed during the year:
|
| Job 400 | Job 401 |
| Direct materials | $854 | $1535 |
| Direct labour | $689 | $2850 |
| Direct labour hours | 48 | 66 |
| Number of setups | 2 | 5 |
| Number of orders | 5 | 4 |
| Machine hours | 19 | 26 |
| Kilowatt hours | 28 | 52 |
The companys normal activity is 4003 direct labour hours.
If Barker used activity based costing, the total cost of Job 401 would be:
Select one:
a. $ 9197
b. $ 6663
c. $ 9019
d. $ 9169
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