Business, 07.04.2020 21:27 20011854

Adams, Inc., is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued hard cover or a deluxe, hand-embossed, hand-stitched, leather cover. Adams currently allocates overhead to the books based on direct labor hours.

A recent activity analysis conducted by the controller revealed the following information.

Standard
Edition Deluxe
Edition
Units produced 455,000 14,000
Direct labor hours 500,500 37,800
Printing press hours 104,650 3,220
Sales orders 4,550 15,400

(a) Calculate the following for each product: (Round answers to 2 decimal places, e. g. 15.25.)

Standard edition Deluxe edition
i. Direct labor hours per unit
DLH / unit
DLH / unit
ii. Printing press hours per unit
PPH / unit
PPH / unit
iii. Sales orders per unit
order / unit
order / unit

Answers: 3

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Adams, Inc., is a book publisher that reissues old titles. The company offers these books with eithe...