achor Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs $2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively: $500 and $500 $500 and $1,000 $1,000 and $1,000 $1,000 and $2,000 None of the above
achor Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs $2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively: $500 and $500 $500 and $1,000 $1,000 and $1,000 $1,000 and $2,000 None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nachor Company manufactures two products. Product A has 800 units produced, require 200 material moves and one direct labor hour per unit; Product B has 1,600 units produced, require 800 material moves and two direct labor hours per unit. The materials handling costs $2,000,000. Under the Activity Based Costing, the material handling costs allocated to each unit of A and B would be, respectively:
$500 and $500
$500 and $1,000
$1,000 and $1,000
$1,000 and $2,000
None of the above
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