Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Private Corporation manufactures two types of transponders--no. 156 and no. 157-and applies manufacturing overhead to all units of the rate of $79.00 per machine hour.
Private Corporation manufactures two types of transponders--no. 156 and no. 157-and applies manufacturing overhead to all units of the rate of $79.00 per machine hour. Production information follows Anticipated volume (units) Direct material cost Direct labor cost No. 156 7.000 $45 50 NO. 157 16,500 $70 30 The controller who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours worked. and outgoing shipments, the activities three respective cost drivers, follow. Setups Machine hours worked Outgoing shipments No. 156 65 15,500 125 No. 157 45 28,000 85 Total 110 43,500 210 The firm's total overhead of $3,436,500 is subdivided as follows: manufacturing setups. $265,000 machine processing $2665.000 and product shipping $506,500 Required: A. Compute the pool rates that would be used for manufacturing setups, machine processing, and product shipping in an activity based costing system B. Assuming use of activity-based costing, compute the unit overhead costs of product nos. 156 and 157 if the expected manufacturing is attained totalent normanninn
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started