The manufacturing division of an electronics company uses

Reference no: EM13481727

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: EM13481727

Questions Cloud

Calculate the production cost per unit for each of landons : landon company makes two models of childrens playhouses the castle and the mansion.basic production information

Assume break-even volume in dollars is 1500000 what are : corporation has determined the contribution margin ratio is 35 and the income tax rate is 40.requireda assume

What is the regular overtime amp total earnings for each : both are paid time and a half for any hours worked over eight hours each workday and work on saturdays and are paid

Setting audit risk at 5 us a valid setting for controlling : setting audit risk at 5 us a valid setting for controlling audit risk at a low level only if the auditor assumes that

The manufacturing division of an electronics company uses : the manufacturing division of an electronics company uses activity-based costing. the company has identified three

Materiality is a concept that can be applied quantitatively : materiality is a concept that can be applied quantitatively or qualitatively. in essene it is a concept used to ensure

Prepare a depreciation schedule for the asset showing : clary jensen farms purchased power equipment with an expected useful life of four years or 1000 hours of usage. the

Compute the cost of goods manufactured for the year ended : information for the year ended december 31 2010sales 110000direct materials used 20800indirect production costs-fixed

A what is the amount of goodwill that joyful should record : joyful sound music company purchased the net assets i.e. assets minus liabilities of metrodome company for 845000.

User Account

All Pages