Advantage inc produces two products a and b last year the

Assignment Help Accounting Basics

Reference no: EM13583320

Advantage Inc. produces two products A and B. Last year the overhead costs were allocated based on machine hours. This year they are considering ABC.

Cost Pool	Driver and Level		Cost in Pool	A	B	Allocation Base
Supervisors Salaries	120,000	Direct labor hours	$240,000	80,000	40,000	$2.00	per DL hour
Quality Control	1,500	inspections	$150,000	900	600	$100.00	per inspection
Machining	100,000	machine hours	$600,000	80,000	20,000	$6.00	per machine hr.
Production in units				20,000	5,000
Total overhead costs			$990,000

a.If overhead is allocated using the traditional method of direct labor hours what is the overhead cost per direct labor hour?

b.Under the traditional method what is the overhead cost per unit for A's?

c.Under the traditional method what is the overhead cost per unit for B's?

Reference no: EM13583320

Questions Cloud

You are the new marketing manager for a firm that produces : you are the new marketing manager for a firm that produces a line of athletic shoes to be targeted to the college

Tom is looking at an investment that will pay tom 1000 per : shulas 347 grill has budgeted the following costs for a month in which 1600 steak dinners will be produced and sold

For example you could describe policies before and after : as the new manager of human resources you remember that during the interview process your boss the chief executive

Upon further investigation golden found that they could : golden reed company is considering outsourcing one its parts. golden requires 30000 of the parts per year. the part has

Advantage inc produces two products a and b last year the : advantage inc. produces two products a and b. last year the overhead costs were allocated based on machine hours. this

Discuss the levels of the court through which the case : religion and politics have traditional been highly debated topics in our society. recently the pledge of allegiance has

A solution transmittance is 35 at 260 nm what will the : a solution transmittance is 35 at 260 nm. what will the solution absorbance be if you dilute 25.0 ml of the solution to

Assume the chocolate clusters are not dropped and the : a candy company makes chocolate and peanut clusters which produced the following results last

Nexus star inc produces various kinds of oils one of its : nexus star inc. produces various kinds of oils. one of its product product x is made from castor oil beeswax aloe vera

User Account

All Pages