Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rundle Company produces commercial gardening equipment Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs

image text in transcribed
image text in transcribed
Rundle Company produces commercial gardening equipment Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost. pools follow Production of 720 sets of cutting shears, one of the company's 20 products, took 270 labor hours and 6 setups and consumed 17 percent of the product-sustaining activities. Required a. Had mac pany used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shear: b. How verhead is allocated to the cutting shears using activity-based costing? c. Comi ut. eoverhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocutic 720 units are produced If direct product costs are $190 and the product is priced at 30 percent above cost for what price 1 the product sell under each allocation system? Complete this question by entering your answers in the tabs below. Ifad the company used labor hours as a companywide allocation bose, how much overhead would it have allocated to the cutting shears? How much overhead is allocated to the cutting shears using activity based costing? Note: Round intermediate calculations to 2 deamal places. Round your final answers to the nearest whele dollar amount. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 720 units are produced. If direct product costs are $190 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? Note: Round intermediate calculations and final answers to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forest Management Auditing

Authors: Lucio Brotto

1st Edition

0367605872, 978-0367605872

More Books

Students also viewed these Accounting questions