Question
Question 12 2 pts Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing
Question 12 2 pts Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided as follows: Overhead Overhead costs assigned Number of cost driver activities ($) Material handling 120,000 240,000 Parts Devising 400,000 50,000 Machine hours (MH) Assembling 168,000 240,000 Parts Finishing 120,000 2,000 Finishing hours (FH) Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90 respectively. The amount of finishing costs allocated to each refrigerator would be: (Round your answer to two decimal points) O $21.00 per unit O $15.00 per unit O $60.00 per unit O $8.00 per unit < Previous Next
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