Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q12 Cruise Manufacturing has two direct cost categories: direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on
Q12
Cruise Manufacturing has two direct cost categories: direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Cruise's manufacturing costs: Direct Cost Categories standard Quanty Cost per Input Unit) Cost per Input Unit Standard Quantity Direct Materials 7 pounds per output unit $15 per pound 1 hours per output unit Direct Labor $18 per hour Manufacturing Overhead: Cost per Input Unit Variable Manufacturing Overhead $5 per Direct Labor Hour By the end of August 2010 Cruise Manufacturing records indicated the following: Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production $11.49 per pound 93,000 pounds $16 per hour 45,000 labor hours $390,000 14,000 output unitsStep 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