Question
se the information below to answer the followingquestion(s): Sparrow Manufacturing manufactures small parts and uses an activitybased costing system. The following is the activity analysisinformation:
se the information below to answer the followingquestion(s):
Sparrow Manufacturing manufactures small parts and uses an activitybased costing system. The following is the activity analysisinformation:
Activity
Est. Indirect Activity Costs
Allocation base
Cost allocation rate
Materials
$70,000
Material moves
$2.00/move
Assembling
$240,000
Direct labour hours
$8.00/dir. labour hour
Packaging
$80,000
# of finished units
$0.80/finished unit
The following parts were produced in October with the followinginformation:
Part
# Produced
Materials Costs
# Moves
Dir. labour Hrs.
A
2,500
$2,500
800
200
B
3,500
$7,000
1,500
300
C
4,500
$11,250
2,200
1,000
Which one of the hfollowing is the total manufacturing costs for part A?
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