erlal Accounting- Spring21Time left 1:34:22XYZ Co. manufactures three types of remote-control devices:X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related costdrivers). Each activity, its budgeted cost, and related cost driver is identified below.ActivityCost DriverCostMaterial handling$225,000Number of partsMaterial insertion2,475,000Number of partsAutomated machinery840,000Machine hoursFinishing170,000Direct labor hoursPackaging170,000Orders shippedTotal$3.880.000The following information pertains to the three product lines for next year:Units to be produced10,0005,0002,000Orders to be shipped1,000500200101525Number of parts perunitMachine hours per unit13Labor hours per unit2Windows buWhat is pool rate for the automated machinery activity?Is buu sc)NG

Pool rate for automated machinery is $ 24 per machine hour.

840,000 Machine hours 170,000 Direct labor hours 170,000 Orders shipped $3.880.000 rtains to the three product lines for next year: Y 10,000 5,000 2,000 1,000 500 200 10 15 25 1 3 2 2 Smated machinery activity?

840,000 Machine hours 170,000 Direct labor hours 170,000 Orders shipped $3.880.000 rtains to the three product lines for next year: Y 10,000 5,000 2,000 1,000 500 200 10 15 25 1 3 2 2 Smated machinery activity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

erlal Accounting- Spring21
Time left 1:34:22
XYZ Co. manufactures three types of remote-control devices:X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost
drivers). Each activity, its budgeted cost, and related cost driver is identified below.
Activity
Cost Driver
Cost
Material handling
$225,000
Number of parts
Material insertion
2,475,000
Number of parts
Automated machinery
840,000
Machine hours
Finishing
170,000
Direct labor hours
Packaging
170,000
Orders shipped
Total
$3.880.000
The following information pertains to the three product lines for next year:
Units to be produced
10,000
5,000
2,000
Orders to be shipped
1,000
500
200
10
15
25
Number of parts per
unit
Machine hours per unit
1
3
Labor hours per unit
2
Windows bu
What is pool rate for the automated machinery activity?
Is buu sc)
NG

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