Business, 05.05.2020 07:36 gjvyverman

Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).
The company has two products, N06D and M09K, about which it has provided the following data:

N06D M09K
Direct materials per unit $17.70 $62.50
Direct labor per unit $5.00 $16.00
Direct labor-hours per unit 0.50 1.60
Annual production (units) 40,000 15,000

The company's estimated total manufacturing overhead for the year is $2,532,200 and the company's estimated total direct labor-hours for the year is 44,000.
The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Activities and Activity Measures Estimated
Overhead Cost
Supporting direct labor (DLHs) $880,000
Setting up machines (setups) 376,200
Parts administration (part types) 1,276,000
Total $2,532,200

Expected Activity
N06D M09K Total
DLHs 20,000 24,000 44,000
Setups 1,408 1,100 2,508
Part types 1,540 1,012 2,552

The manufacturing overhead that would be applied to a unit of product M09K under the activity-based costing system is closest to:

a) $76.73 b) $92.08 c) $11.00 d) $168.81

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 22:50, jonlandis6

Synovec co. is growing quickly. dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. if the required return is 11 percent, and the company just paid a dividend of $2.05, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Answers: 2

continue

Business, 21.06.2019 23:30, jmsmith1218

Acompany is developing a new highperformance wax for cross country ski racing. in order to justify the price marketingwants, the wax needs to be very fast. specifically, the mean time to finish their standard test course should be less thanseconds for a former olympic champion. to test it, the champion will ski the course 8 times. the champion's times(selected at random) are 59.9 61.9 48.8 52.2 46.6 45.3 50.6 and 41.1 seconds to complete the test course. complete parts a and b below. a) should they market the wax? assume the assumptions and conditions for appropriate hypothesis testing are metfor the sample. assume=0.05. what are the null and alternative hypotheses? choose the correct answer below. b) suppose they decide not to market the wax after the test, but it turns out that the wax really does lower the champion'saverage time to less thanseconds. what kind of error have they made? explain the impact to the company of such anerror.

Answers: 2

continue

Business, 22.06.2019 02:40, TerronRice

Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?

Answers: 3

continue

Business, 22.06.2019 04:30, lizdeleon248

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

Answers: 1

continue

You know the right answer?

Look Manufacturing Corporation has a traditional costing system in which it applies manufacturing ov...