Acme Company manufactures and sells two products,Product A and Product B. Here are data regarding theexpected production and direct labor hours (DLHs):Product AProduct BActivityLabor-relatedAcme applies overhead using activity-based rates basedon the following estimates:Production600 units400 unitsDLHsMachine setups SetupsMachiningMHsO $1,127,785$796,812DLH per unit6.0 DLHS3.0 DLHSO $663,551O $529,680Allocation Overheadbasecosts$127,500$60,110$940,160Total DLHs3,600 DLHS1,200 DLHSUsage of allocation baseProduct BProduct A3,6007004,000The total overhead applied to Product A is closest to:(Round overhead rates to nearest penny.)1,2004003,100Total4,8001,1007,100

The absorption costing approach is the costing approach that is used to determine the total cost of…

Acme Company manufactures and sells two products, Product A and Product B. Here are data regarding the expected production and direct labor hours (DLHs): Product A Product B Activity Labor-related Acme applies overhead using activity-based rates based on the following estimates: DLHS Machine setups Setups Machining MHs $1,127,785 Production 600 units 400 units $796,812 O $663,551 DLH per unit 6.0 DLHS 3.0 DLHs $529,680 Allocation Overhead base costs $127,500 $60,110 $940,160 Total DLHs 3,600 DLHS 1,200 DLHS Usage of allocation base Product A Product B 3,600 700 4,000 The total overhead applied to Product A is closest to: (Round overhead rates to nearest penny.) 1,200 400 3,100 Total 4,800 1,100 7,100

Acme Company manufactures and sells two products, Product A and Product B. Here are data regarding the expected production and direct labor hours (DLHs): Product A Product B Activity Labor-related Acme applies overhead using activity-based rates based on the following estimates: DLHS Machine setups Setups Machining MHs $1,127,785 Production 600 units 400 units $796,812 O $663,551 DLH per unit 6.0 DLHS 3.0 DLHs $529,680 Allocation Overhead base costs $127,500 $60,110 $940,160 Total DLHs 3,600 DLHS 1,200 DLHS Usage of allocation base Product A Product B 3,600 700 4,000 The total overhead applied to Product A is closest to: (Round overhead rates to nearest penny.) 1,200 400 3,100 Total 4,800 1,100 7,100

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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