Activities Indirect activity budget Allocation base (cost driver) Materials handling $55,000 Based on number of parts Machine setup $32,000 Based on number of setups Assembling $9820 Based on number of parts Packaging $15,100 Based on number of finished units Watson's Computer Company expects to produce 2330 computers. Watson's Computer Company also expects to use 11,000 parts and have 10 setups. The allocation rate for materials handling will be (Round all answers to two decimal places.) Question 16 options: $5.00 $6.48 $8.40 $23.61
Activities Indirect activity budget Allocation base (cost driver) Materials handling $55,000 Based on number of parts Machine setup $32,000 Based on number of setups Assembling $9820 Based on number of parts Packaging $15,100 Based on number of finished units Watson's Computer Company expects to produce 2330 computers. Watson's Computer Company also expects to use 11,000 parts and have 10 setups. The allocation rate for materials handling will be (Round all answers to two decimal places.) Question 16 options: $5.00 $6.48 $8.40 $23.61
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Watson's Computer Company uses ABC to account for its manufacturing process.
Watson's Computer Company expects to produce 2330 computers. Watson's Computer Company also expects to use 11,000 parts and have 10 setups.
The allocation rate for materials handling will be (Round all answers to two decimal places.)
| Activities | Indirect activity budget |
Allocation base (cost driver) |
| Materials handling | $55,000 | Based on number of parts |
| Machine setup | $32,000 | Based on number of setups |
| Assembling | $9820 | Based on number of parts |
| Packaging | $15,100 | Based on number of finished units |
Watson's Computer Company expects to produce 2330 computers. Watson's Computer Company also expects to use 11,000 parts and have 10 setups.
The allocation rate for materials handling will be (Round all answers to two decimal places.)
Question 16 options:
|
|
$5.00
|
|
|
$6.48
|
|
|
$8.40
|
|
|
$23.61
|
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