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Bears Incorporation manufactures chainsaws that sell for $94. Each chainsaw uses $16 in direct materials and $5 in direct labor per unit. Bears Inc. uses two activities to assign overhead costs: Machining, which is applied at the rate of $6 per machine hour, and Finishing, which is applied at the rate of $22 per batch. This month, Bears made 260 chainsaws, using 1,951 machine hours in 47 batches. What is the total manufacturing cost for one chainsaw using activity based costing? (Do not round intermediate calculations.)   Multiple Choice   $70   $49   $21   $73

Bears Incorporation manufactures chainsaws that sell for $94. Each chainsaw uses $16 in direct materials and $5 in direct labor per unit. Bears Inc. uses two activities to assign overhead costs: Machining, which is applied at the rate of $6 per machine hour, and Finishing, which is applied at the rate of $22 per batch. This month, Bears made 260 chainsaws, using 1,951 machine hours in 47 batches. What is the total manufacturing cost for one chainsaw using activity based costing? (Do not round intermediate calculations.)   Multiple Choice   $70   $49   $21   $73

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bears Incorporation manufactures chainsaws that sell for $94.

Each chainsaw uses $16 in direct materials and $5 in direct labor per unit. Bears Inc. uses two activities to assign overhead costs: Machining, which is applied at the rate of $6 per machine hour, and Finishing, which is applied at the rate of $22 per batch.

This month, Bears made 260 chainsaws, using 1,951 machine hours in 47 batches. What is the total manufacturing cost for one chainsaw using activity based costing? (Do not round intermediate calculations.)

 

Multiple Choice
  •  

    $70

  •  

    $49

  •  

    $21

  •  

    $73

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