Solution-Determine the unit cost for each product

Determine the unit cost for each product

Assignment Help Cost Accounting

Reference no: EM13538877

ABC Manufacturing, Inc. produces three gadgets (Ace, Best, and Champ) in two departments, Machining and Assembly. Each product requires one hour of direct labor for completion. The following table provides production and cost data for the year.

	Ace	Best	Champ	Total
Number of units	25,000	15,000	5,000	45,000
Machine hours	2,500	1,500	2,000	6,000
Direct materials	$1,000,000	$450,000	$275,000	$1,725,000
Direct labor	375,000	225,000	75,000	675,000
Overhead
Machining				900,000
Assembly				450,000
Total overhead				1,350,000
Tot costs				$3,750,000

Required:

Use the plantwide allocation method to determine the unit cost for each product. The allocation bases to choose from are

a. Machine hours.

b. Direct labor costs.

Reference no: EM13538877

Questions Cloud

What is the traction force exerted to the right on the leg : A setup similar to the one shown in the figure below is often used in hospitals to support and apply a horizontal traction force to an injured leg. (Let m = 6.05 kg and ? = 81.0°.) What is the traction force exerted to the right on the leg?

Determine the cost driver rate for each activity cost pool : Determine the cost driver rate for each activity cost pool and use the activity-based costing method to determine the unit cost for each product.

What is the power put into the system by gravity : A square loop with sides of 20 cm is falling through a magnetic field at v=5 m/s. The magnetic field is going into the page and is increasing as the loop falls farther through it. B = 3.0 T - 1.5 T * y. Also, the acceleration due to gravity is 9.8..

calculate their velocity after the collision : A 26.3 g mass is moving in the +x-direction at 48.8 cm/s while a 25.7 g mass is moving in the -x-direction at 62.8 cm/s. Find their velocity (in cm/s) after the collision

Determine the unit cost for each product : Determine the unit cost for each product. The allocation bases to choose from are Machine hours and direct labor costs.

Explain what ions are present in a solution of hcl : What ions are present in a solution of HCl. Theoretically, which of these ions will affect the equilibrium of Co Cl2, and what will its effect be

Suns rays are focused-using a lens as a burning glass : The sun's rays are focused, using a lens as a "burning glass." All the visible sunlight entering a lens of radius 2.97 cm is concentrated in a circular spot of radius 1.05 mm. Find the intensity of visible light in the spot if the intensity of visibl..

Department allocation method to determine cost for product : Considering the nature of the production processes, the cost accountant of ABC Manufacturing decided to experiment with the department-specific allocation approach

Evaluate the concentration of nobr after 71 seconds : The rate constant for the second order reaction is .80 M s at 10 degrees C starting with a concentration of .86 M calculate the concentration of NOBr after 71 seconds.

User Account

All Pages

Determine the unit cost for each product

Reference no: EM13538877

Reference no: EM13538877

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT