Question
Sparrow Manufacturing manufactures small parts and uses an activity-based costing system. Activity Est. Indirect Activity Costs Allocation base Cost allocation rate Materials $70,000 Material moves
Sparrow Manufacturing manufactures small parts and uses an activity-based costing system.
| 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 following information:
| 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 |
Total manufacturing costs for part A is
a) 7700
b) 3200
c) 5200
d) 5700
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The Fraud Audit Responding To The Risk Of Fraud In Core Business Systems
Authors: Leonard W. Vona
1st Edition
0470647264, 978-0470647264
