Answered step by step
Verified Expert Solution
Question
1 Approved Answer
the manufacturing plant every month: (CH 7, 2 Marks) Activity Total Costs (SAR) Total number of units of Cost Driver Material handling 315,000 450,000 parts
the manufacturing plant every month: (CH 7, 2 Marks) Activity Total Costs (SAR) Total number of units of Cost Driver Material handling 315,000 450,000 parts Supervision of direct labor 180,000 110 employees Janitorial and cleaning 250,000 5.500 hours Machining 350,000 8,500 machine hours Total costs 1,095,000 The above activities are used by the two departments as follows: Department A Department B Material handling 220,000 parts 230,000 parts Supervision of direct labor 65 employees 45 employees Time spent cleaning 2.500 hours 3.000 hours Number of machine hours 6.000 machine hours 2.500 machine hours a. How much of the material handling cost will be allocated to Department A? b. What is the ABC allocation rate for supervision of direct labor? T&T produces product 'X' as a part of its main product. Each year, the company produces 75,000 units of product 'X'. The costs of production are mentioned below. An outside supplier has offered to deliver 75,000 units of product 'X' annually at a cost of $7.35 per unit. A fixed production cost of 120,000 is unavoidable for product 'X'. Should T&T Co. make or buy product 'X
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