12) Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system. Activity Allocation base Cost allocation rate. Materials Assembling Packaging Est. Indirect Activity Costs Part A B C $75,000 Material moves $255,000 Direct labor hours $90,000# of finished units The following parts were produced in October with the following information: #Produced 2,250 4,000 4,750 Materials Costs $3,000 $6,500 $9,000 #Moves 900 1,700 2,500 $3.00/move $10.00/dir. labor hour $1.00/finished unit Total unit cost for part B is closest to (rounded to two decimal places) B) $3.09. A) $4.71. C) $7.63. Dir. Labor Hrs. 250 325 1,500 D) $4.64.
12) Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system. Activity Allocation base Cost allocation rate. Materials Assembling Packaging Est. Indirect Activity Costs Part A B C $75,000 Material moves $255,000 Direct labor hours $90,000# of finished units The following parts were produced in October with the following information: #Produced 2,250 4,000 4,750 Materials Costs $3,000 $6,500 $9,000 #Moves 900 1,700 2,500 $3.00/move $10.00/dir. labor hour $1.00/finished unit Total unit cost for part B is closest to (rounded to two decimal places) B) $3.09. A) $4.71. C) $7.63. Dir. Labor Hrs. 250 325 1,500 D) $4.64.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:12) Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system.
Activity
Cost allocation rate.
Materials
Assembling
Packaging
Est. Indirect Activity
Costs
Part
A
B
C
Allocation base
$75,000 Material moves
$255,000 Direct labor hours
$90,000# of finished units
The following parts were produced in October with the following information:
# Produced
2,250
4,000
4,750
Materials Costs
$3,000
$6,500
$9,000
#Moves
900
1,700
2,500
$3.00/move
$10.00/dir. labor hour
$1.00/finished unit
Total unit cost for part B is closest to (rounded to two decimal places)
B) $3.09.
A) $4.71.
C) $7.63.
Dir. Labor Hrs.
250
325
1,500
D) $4.64.
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