Beta Manufacturing uses ABC with the following activity rates: ⚫ Machine setup: $75 per setup Quality inspection: $3.50 per inspection hour ⚫ Material handling: $45 per material move Last month, Product X123 required: 15 machine setups ⚫ 320 inspection hours ⚫ 42 material moves Calculate the total overhead cost assigned to Product X123.

Beta Manufacturing uses ABC with the following activity rates: ⚫ Machine setup: $75 per setup Quality inspection: $3.50 per inspection hour ⚫ Material handling: $45 per material move Last month, Product X123 required: 15 machine setups ⚫ 320 inspection hours ⚫ 42 material moves Calculate the total overhead cost assigned to Product X123.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
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