Atmel Inc. manufactures and sells two products. Data with regard to these products are given below. Product A Product B 30,000 12,000 2 3 50 150 12 18 12 30 Units produced and sold Machine hours required per unit Receiving orders per product line Production orders per product line Production runs Inspections Total budgeted machine hours are 100,000. The budgeted overhead costs are shown below. Receiving costs $450,000 Engineering costs 300,000 Machine setup costs 25,000 Inspection costs 200,000 Total budgeted overhead costs $975,000 Using activity-based costing, the per unit overhead cost allocation of receiving costs for product A is Select one: 8 20 a. $19.50 b. $3.75 c. $10.75 X d. $28.13

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Atmel Inc. manufactures and sells two products. Data with regard to these products are given below.
Product A Product B
30,000
12,000
2
3
150
18
12
30
Units produced and sold
Machine hours required per unit
Receiving orders per product line
Production orders per product line
Production runs
Inspections
Total budgeted machine hours are 100,000. The budgeted overhead costs are shown below.
Receiving costs
$450,000
Engineering costs
300,000
Machine setup costs
25,000
Inspection costs
200,000
Total budgeted overhead costs $975,000
Using activity-based costing, the per unit overhead cost allocation of receiving costs for product A is
Select one:
50
12
8
20
a. $19.50
b. $3.75
c. $10.75 X
d. $28.13
Transcribed Image Text:Atmel Inc. manufactures and sells two products. Data with regard to these products are given below. Product A Product B 30,000 12,000 2 3 150 18 12 30 Units produced and sold Machine hours required per unit Receiving orders per product line Production orders per product line Production runs Inspections Total budgeted machine hours are 100,000. The budgeted overhead costs are shown below. Receiving costs $450,000 Engineering costs 300,000 Machine setup costs 25,000 Inspection costs 200,000 Total budgeted overhead costs $975,000 Using activity-based costing, the per unit overhead cost allocation of receiving costs for product A is Select one: 50 12 8 20 a. $19.50 b. $3.75 c. $10.75 X d. $28.13
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