Question
Westerner Manufacturing has established the following cost pools for this year: Cost Pool Costs Cost Drivers Maintenance $20,000 10,000 machine hours Material handling $25,000 250
Westerner Manufacturing has established the following cost pools for this year:
| Cost Pool | Costs | Cost Drivers |
| Maintenance | $20,000 | 10,000 machine hours |
| Material handling | $25,000 | 250 moves |
| Machine setup | $30,000 | 1,000 hours |
| Inspection | $25,000 | 500 inspections |
| Total | $100,000 | N/A |
The following information pertains to two representative jobs completed during January:
| Item | Job 101 | Job 102 |
| Direct materials | $10,000 | $7,500 |
| Direct labor | $8,000 | $5,000 |
| Units produced | 2,000 | 1,500 |
| Direct labor hours | 640 | 400 |
| Machine hours | 700 | 650 |
| Number of material moves | 40 | 15 |
| Number of setup hours | 80 | 40 |
| Number of inspections | 35 | 15 |
11.6 Determine the cost driver rate under activity based costing for each inspection.
| $50/inspection | ||
| $60/inspection | ||
| $75/inspection | ||
| $80/inspectio |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
