Business, 19.01.2021 19:20 ashleyheink3796

Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system product A has been assigned overhead of $2.82 per unit while product B has been assigned $13.58 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs Cost Driver Driver Consumption
Machine setup $ 158,000 Setup hours 2,000
Materials handling 112,000 Pounds of materials 16,000
Electric power 25,000 Kilowatt-hours 25,000
The following cost information pertains to the production of A and B, just two of its many products:
A B
Number of units produced 5,000 10,000
Direct materials cost $32,000 $41,000
Direct labor cost $41,000 $38,000
Number of setup hours 100 200
Pounds of materials used 1,000 1,000
Kilowatt-hours 2,000 4,000
Use activity-based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.)

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 10:50, jadeafrias

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.

Answers: 3

continue

Business, 22.06.2019 16:00, yesenia1162

What is used by accountant to analyze transactions ?

Answers: 2

continue

Business, 22.06.2019 21:50, JewelzSkullz

Which three of the following expenses can student aid recover? -tuition -television -school supplies -parties and socializing -boarding/housing

Answers: 2

continue

Business, 23.06.2019 01:50, breannaasmith1122

The de mesa family will soon be occupying their newly renovated house. however, the bathroom measuring 10ft. by 16 ft. still needs to be covered by tiles. if the tile that they desire measures 2/5 ft by 2/5 ft., how many tiles will they need to cover the bathroom floor?

Answers: 3

continue

You know the right answer?

Hakara Company has been using direct labor costs as the basis for assigning overhead to its many pro...