Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q 3 DD Company has two departments, Dept. A and Dept. You are provided the following costs for five activities that occur at the manufacturing
Q 3 DD Company has two departments, Dept. A and Dept. You are provided the following costs for five activities that occur at the manufacturing plant every month: (CH 7, 2 Marks) Activity Material handling Supervision of direct labor Janitorial and cleaning Machining Total Costs (SAR) Total number of units of Cost Driver 315,000 450,000 parts 180,000 110 employees 250,000 5,500 hours 350.000 8.500 machine hours Total costs 1,095,000 The above activities are used by the two departments as follows: Department A Department B Material handling 220,000 parts 230,000 parts Supervision of direct labor 65 employees 45 employees Time spent cleaning 2,500 hours 3,000 hours Number of machine hours 6,000 machine hours 2.500 machine hours a. How much of the material handling cost will be allocated to Department A? b. What is the ABC allocation rate for supervision of direct labor
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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