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amett Products manufactures three types of remote-control devices: Economy, Standard, and Deluse. The company, which uses activity-based costing, has identified five activities (and related cost drivers. Each ctivity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Autonated machinery Finishing Packaging Total Cost $245,000 2,940,000 Cost Driver Number of parts Number of parts Machine hours 926,400 102,000 Direct labor hours 182,000 Orders shipped $4,475,400 The following information pertains to the three product lines for next year Economy Standard 5,400 10,400 1,040 540 10 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit 1 2 15 3 2 Deluxe 2,400 240 25 5 2 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe?

amett Products manufactures three types of remote-control devices: Economy, Standard, and Deluse. The company, which uses activity-based costing, has identified five activities (and related cost drivers. Each ctivity, its budgeted cost, and related cost driver is identified below. Activity Material handling Material insertion Autonated machinery Finishing Packaging Total Cost $245,000 2,940,000 Cost Driver Number of parts Number of parts Machine hours 926,400 102,000 Direct labor hours 182,000 Orders shipped $4,475,400 The following information pertains to the three product lines for next year Economy Standard 5,400 10,400 1,040 540 10 Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit 1 2 15 3 2 Deluxe 2,400 240 25 5 2 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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amett Products manufactures three types of remote-control devices: Economy, Standard, and Deluse. 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 Material handling Material insertion Autonated machinery Finishing Packaging Total Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Cont $ 245,000 2,940,000 926,400 182,000 Direct labor hours 182,000 Orders shipped $4,475,400 Coat Driver Number of parts The following information pertains to the three product lines for next year: Economy Standard Deluxe 5,400 2,400 10,400 1,040 540 240 15 25 Mutiple Choice $287 Number of parts Machine hours 10 1 2 2 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe? 5 2
Transcribed Image Text:amett Products manufactures three types of remote-control devices: Economy, Standard, and Deluse. 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 Material handling Material insertion Autonated machinery Finishing Packaging Total Units to be produced Orders to be shipped Number of parts per unit Machine hours per unit Labor hours per unit Cont $ 245,000 2,940,000 926,400 182,000 Direct labor hours 182,000 Orders shipped $4,475,400 Coat Driver Number of parts The following information pertains to the three product lines for next year: Economy Standard Deluxe 5,400 2,400 10,400 1,040 540 240 15 25 Mutiple Choice $287 Number of parts Machine hours 10 1 2 2 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe? 5 2
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