Question
URGENT Ed Inc. makes two kinds of plastic toy dump trucks - the Mini and the Mega. Below is some relevant information for the past
URGENT
Ed Inc. makes two kinds of plastic toy dump trucks - the Mini and the Mega. Below is some relevant information for the past year (unit means one truck): Ed Inc. breaks total indirect costs into two different cost pools, with corresponding cost-allocation bases:
molding costs of $150,000, with molding machine-hours as the allocation base, and assembly costs of $60,000, with direct labor-hours as the allocation base.
What are the total indirect costs allocated to each Mega dump truck (molding costs plus assembly costs)?
a. $7.94
b. $13.94
c. $15.56
d. $8.90
Number of units sold Sales price per unit Direct materials per unit Direct labor dollars per unit Molding machine hours per unit Direct labor hours perunit Mini 20,000 $10.00 $0.75 $3.60 0.50 Mera 15,000 $19.00 $1.50 $4.50 LUD 0.20 0.25Step by Step Solution
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