Business, 26.02.2020 03:10 genyjoannerubiera

ACTIVITY BASED COSTING SYSTEMS AND ACTIVITY BASED MANAGEMENT

Model A Model B Model C Total
Unit produced 300 500 200 1000
Direct materials (per unit) $50 $75 $20
Direct labor (per unit) $20 $50 $40
Cost driver information:
number of parts (per unit) 20 42 30
direct labor hours (per unit) 3 4.6 4
square feet (in total for all units) 600 400 1,000
Overhead costs:
Labor Support $22,000
Materials Support $33,000
Facility Cost $90,000
Total overhead $145,000

Use activity-based costing to calculate the total cost for each Model Cheater. Allocate Labor Support using direct labor hours, Materials Support using number of parts, and Facility Cost using square feet.

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ACTIVITY BASED COSTING SYSTEMS AND ACTIVITY BASED MANAGEMENT

Model A Model B Model C To...