Compute the indirect production costs allocated to each

Reference no: EM13600471

The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.

Activity Cost Driver
Activity 1 Direct materials cost
Activity 2 Direct labor cost
Activity 3 Kilowatt hours

Three types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:

Product A Product B Product C
Direct materials cost $75,000 $50,000 $125,000
Direct labor cost $6,000 $1,000 $3,000
Direct labor hours 1,000 500 1,500
Kilowatt hours 150,000 200,000 150,000

Indirect production costs for the month are as follows:

Activity 1 $12,000
Activity 2 20,000
Activity 3 16,000
Total $48,000

Required:
A) Compute the indirect production costs allocated to each product using the ABC system.
B) Compute the indirect production costs allocated to each product using a traditional costing system.
Assume indirect production costs are allocated to each product using the cost driver: direct labor hours

Reference no: EM13600471

Questions Cloud

A supervisor would have to be hired and paid a salary of : as described in item 1 of nikes 10-k virtually all of its products are produced by independent contractors. suppose

71000 in raw materials were requisitioned for use in : larned corporation recorded the following transactions for the just completed month.a.71000 in raw materials were

What is meant by double taxation of a corporations income : what is meant by double taxation of a corporations income? why does this double taxation not occur in sole

On january 15 2009 tallyho corp incorporated in georgia and : on january 15 2009 tallyho corp. incorporated in georgia and was authorized to issue 3000000 shares of common stock. in

Compute the indirect production costs allocated to each : the manufacturing division of an electronics company uses activity-based costing. the company has identified three

Wrights construction builds custom houses for individual : wrights construction builds custom houses for individual buyers. on july 1 it had one job started with a beginning work

What would you expect to happen to the market price per : marigold enterprises is authorized to issue 1000000 shares of 6 par value common stock. since incorporation 550000

Bryant company designs and builds fancy dining room tables : bryant company designs and builds fancy dining room tables for individual customers. on july 1 there were two jobs in

Pearson brothers recently reported an ebitda of 65 million : pearson brothers recently reported an ebitda of 6.5 million and net income of 1.8 million. it had 2.0 million of

User Account

All Pages