Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Widget Company makes two products: Regular and Custom. Budget figures for 2020 are below. Overhead will be calculated using Activity Based Costing. Required: Prepare ABC

image text in transcribed

Widget Company makes two products: Regular and Custom. Budget figures for 2020 are below. Overhead will be calculated using Activity Based Costing. Required: Prepare ABC overhead rates. Use Direct Labour Hours as a driver for facility costs. Compute per unit production costs for each product Answer below or with an excel spreadsheet. per unit Regular Custom UNITS 8,000 2,400 Direct Materials $200 $400 DL Hours @ 8 $25/Hr MFG Overhead $2,560,000 16 Annual Overhead Data Estimated Use Activity Cost Cost Drivers Est. O/H Regular Custom Pools Receiving Orders $200,000 300 500 Machine set-up Set-ups $434,568 100 700 Machine Machining $1,066,560 16,000 9,600 hours Facility Costs DL Hours $858,872

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance And Risk

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

2rd Edition

0324022131, 978-0324022131

More Books

Students also viewed these Accounting questions

Question

Describe the three broad categories of customer value propositions.

Answered: 1 week ago

Question

What is sampling independence?

Answered: 1 week ago

Question

=+e. User: uses the item or service.11

Answered: 1 week ago