None Helton Fumiture Corporation has identified activity centers to which overhead costsare assigned. The cost pool amounts for these centers and their sekcted activitydrivers for 2012 are as follows.ActivityCenters CostsActivity DriversUrilities$300,00060,000 machine hoursScheduling and setup273,000780 setupsMaterial handling640,0001,600,000 pounds of materialThe company's products and other opertating slatisties followProductsDieet costsS80,000$80,00$90,000Machine bours30,00010,00020,000Number of setups130380270Pounds of material500,000300,000800,000Number of units produced40,00020,00060,000Direct labor hours32.00018,00050,000Required:2. Determine unit product cost using the apyropriate cost drivers( ABC) fet cach ofthe products.b. Before it installed an ABC system, the company used a conventiona!costing(Simple) system and allocated factory overhesd to products using đirect labortours. Determine unit costs for each of the products.

This question deals with the calculation of unit cost under ABC costing system and conventional…

Belton Fumitue Corporation has identified activity centers to which overhes costs ate assiened. The cost pool amounts for these centers and their sekcted activity drivers for 2012 are as follow2 Activity Centers Costs Activity Drivers Utilities $30,000 60,000 machinc hours Scheduling and setup 273.000 780 setups Material handlingr 640,000 1,600,000 pounds of material The company's products and other operating slatistics follow Products A Direct costs $80,000 $80,000 $90,000 Machine bours 30,000 10,000 20,000 Number of setups 130 380 270 Pounds of material 500,000 300,000 800,000 Number of units produced 40,000 20,000 60,000 Direct labor hours 32,000 18,000 50,000 Required: 2. Determine unit product cost using the apyropriate cost drivers( ABC) fet cach of the products b. Before it installed an ABC system, the company used a conventiona! costing(Simple) system and allocated factory overhead to products using đirect labor tours. Determine unit costs for each of the products

Belton Fumitue Corporation has identified activity centers to which overhes costs ate assiened. The cost pool amounts for these centers and their sekcted activity drivers for 2012 are as follow2 Activity Centers Costs Activity Drivers Utilities $30,000 60,000 machinc hours Scheduling and setup 273.000 780 setups Material handlingr 640,000 1,600,000 pounds of material The company's products and other operating slatistics follow Products A Direct costs $80,000 $80,000 $90,000 Machine bours 30,000 10,000 20,000 Number of setups 130 380 270 Pounds of material 500,000 300,000 800,000 Number of units produced 40,000 20,000 60,000 Direct labor hours 32,000 18,000 50,000 Required: 2. Determine unit product cost using the apyropriate cost drivers( ABC) fet cach of the products b. Before it installed an ABC system, the company used a conventiona! costing(Simple) system and allocated factory overhead to products using đirect labor tours. Determine unit costs for each of the products

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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