ation has traditional cost costing system in which it applies manufacturing overnead Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations 163E $18.30 $ 16.50 Direct materials per unit Direct labor per unit Direct labor-hours per unit 1.00 30,000 Annual production (units) The company's estimated total manufacturing overhead for the year is $2.760,000 and the company's estimated total direct labor-hours for the year is 60,000. E76I $ 54.90 $ 49.50 3.00 10,000 The company is considering using a form of activity-based costing to determine its unit product costs for externall reports. Data for this proposed activity-based costing system appear below: Estimated Overhead 163E 30,000 1,140 2,280 Expected Activity using a predetermined overnead rate Cost $ 1,500,000 252,000 1,000,000 $ 2,760,000 E76I Total 30,000 60,000 600 1,740 1,200 3,480 The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to company has products, lost and
ation has traditional cost costing system in which it applies manufacturing overnead Activities and Activity Measures Assembling products (direct labor-hours) Preparing batches (batches) Product support (product variations) Total Direct labor-hours Batches Product variations 163E $18.30 $ 16.50 Direct materials per unit Direct labor per unit Direct labor-hours per unit 1.00 30,000 Annual production (units) The company's estimated total manufacturing overhead for the year is $2.760,000 and the company's estimated total direct labor-hours for the year is 60,000. E76I $ 54.90 $ 49.50 3.00 10,000 The company is considering using a form of activity-based costing to determine its unit product costs for externall reports. Data for this proposed activity-based costing system appear below: Estimated Overhead 163E 30,000 1,140 2,280 Expected Activity using a predetermined overnead rate Cost $ 1,500,000 252,000 1,000,000 $ 2,760,000 E76I Total 30,000 60,000 600 1,740 1,200 3,480 The manufacturing overhead that would be applied to a unit of product 163E under the company's traditional costing system is closest to company has products, lost and
Chapter1: Financial Statements And Business Decisions
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