Product$-$Costing Accuracy, Consumption Ratios

Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs:

Setting up equipment

$$5,000$

$20,000$

Machining

The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production.

$\backslash$table$[[,$Elegant,Fina$],[$Direct labo

Product$-$Costing Accuracy, Consumption Ratios

Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs:

Setting up equipment

$$5,000$

$20,000$

Machining

The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production.

$\backslash$table$[[,$Elegant,Fina$],[$Direct labor,$$9,000,$$$3,000$r$,$$$9,000,$$$3,000$