22)Corp makes two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Product Standard Deluxe Overhead costs Setups 12 28 Number of Number of Components Direct Labor Hours 255 245 8 12 $52,000 $78,000 Assume a traditional costing system applies the O/H costs based on DLH. What is the total amount of O/H costs assigned to the standard model? 23) Number of setups and number of components are identified as activity-cost drivers for O/H. Assuming an activity-based costing (ABC) system is used, what is the total amount of O/H costs assigned to the standard model?
22)Corp makes two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Product Standard Deluxe Overhead costs Setups 12 28 Number of Number of Components Direct Labor Hours 255 245 8 12 $52,000 $78,000 Assume a traditional costing system applies the O/H costs based on DLH. What is the total amount of O/H costs assigned to the standard model? 23) Number of setups and number of components are identified as activity-cost drivers for O/H. Assuming an activity-based costing (ABC) system is used, what is the total amount of O/H costs assigned to the standard model?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
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