Question
Smith Corp. produces two products, Product A and Product Z. The company has budgeted the following production and overhead costs for the upcoming year: Product
Smith Corp. produces two products, Product A and Product Z. The company has budgeted the following production and overhead costs for the upcoming year:
|
| Product A | Product Z | |
| Units Produced |
| 2,000 | 6,000 |
| Material Moves Per Product Line |
| 10 | 30 |
| Total Machine Hours |
| 10,000 | 20,000 |
|
|
|
|
|
| Budgeted Materials Handling Cost | $200,000 |
|
|
If Smith Corp. uses an activity-based costing system to allocate factory overhead, the materials handling cost allocated to Product A and Product Z would be:
| a. | $66,667 and $133,333, respectively | |
| b. | $50,000 and $150,000, respectively | |
| c. | $20,000 and $180,000, respectively | |
| d. | $100,000 and $100,000, respectively |
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Methods of IT Project Management
Authors: Jeffrey Brewer, Kevin Dittman
2nd edition
1557536635, 978-0132367257, 0132367254, 978-1557536631
