Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: Regular Quantity 100,000 800,000 Selling price $900 $750 Unit prime cost $529 $483 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Deluxe Regular Activity Cost Setups Machining Engineering Packing Required: 1. Calculate the overhead rates for each activity. (Round to two decimal places.) 4,000 per setup Setups Machining Engineering Packing S Deluxe Activity Driver Number of setups Machine hours Engineering hours Packing orders 300 100,000 50,000 100,000 130 X per machine hour 50 X per engineering hour 0.90 Xper parking order 200 300,000 100,000 400,000 $2,000,000 80,000,000 6,000,000 100,000
Engineering Packing Required: Engineering hours Packing orders Deluxe Regular $ 1. Calculate the overhead rates for each activity. (Round to two decimal places.) 50,000 100,000 Setups 4,000 per setup Machining 130 X per machine hour Engineering 50 X per engineering hour Packing 0.90 X per packing order 2. Calculate the per-unit product cost for each product. (Round to the nearest dollar.) per unit 100,000 per unit 400,000 6,000,000 100,000
Activity Hates and Activity-Based Product Costing Hammer Activity Hates and Activity-Based Product Costing Hammer Company produces a variety of electronic equipment. One of its
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