XYZ Corp uses an ABC costing system. It has projected the following indirect costs: (Yearly Budgeted Costs)
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Question:
XYZ Corp uses an ABC costing system. It has projected the following indirect costs:
(Yearly Budgeted Costs)
Building Depreciation $ 200, 000.00
Machine Maintenance $ 95, 000.00
Building Insurance $ 12,000.00
Machine depreciation Cost $ 345,000.00
Machine Electrical Cost $ 130, 000.00
Building Utility Cost $ 48,000.00
Building Janitorial Cost $ 36, 000.00
Total Costs
(Yearly Budgeted Drivers)
Machine Hours $ 500, 000.00
Building Square Footage $ 20, 000.00
Direct Labor Hours $ 350, 000. 00
Units Produced $ 200, 000. 00
The best cost driver to apply the Machine Cost Pool would be:
A.Building Square Feet
B.Direct labor Hours
C.Machine Hours
D.Units Produced
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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