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Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: sclentific and business. Both products pass through two producing departments. The
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: sclentific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Units produced per year Prime costs Direct labor hours Machine hours Production runs Inspection hours Maintenance hours Business 750,000 $250,000$2,500,000 100,0001,000,000 500,000 150 3,000 9,000 75,000 50,000 100 2,250 Department Data Department 1 Department 2 Direct labor hours: 25,000 887,500 912,500 Scientific calculator 75,000 112,500 187,500 Business calculator Total Machine hours: 25,000 400,000 425,000 25,000 100,000 125,000 Scientific calculator Business calculator Total Overhead costs: Setup costs $225,000 $225,000
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