Acoma Co. has identified one of its cost pools to be quality control and has assigned $58,473 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 26,700 inspections annually. Suppose Acoma manufactures two products that consume 10,146 (Product 1) and 16,554 (Product 2) inspections each.Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company’s quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma’s product lines. I can not figure out the problem above.?
Acoma Co. has identified one of its cost pools to be quality control and has assigned $58,473 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 26,700 inspections annually. Suppose Acoma manufactures two products that consume 10,146 (Product 1) and 16,554 (Product 2) inspections each.Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company’s quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma’s product lines. I can not figure out the problem above.?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Acoma Co. has identified one of its cost pools to be quality control and has assigned $58,473 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 26,700 inspections annually. Suppose Acoma manufactures two products that consume 10,146 (Product 1) and 16,554 (Product 2) inspections each.
Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company’s quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma’s product lines.
I can not figure out the problem above.?
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