Calculate the cost of Plates and Platters for July based on the following information. Direct Costs Direct Materials Direct Labor Plates Platters $200,000 $80,000 Shipping $2,500 Overhead Costs Assigned to products Design Costs $10,000 Allocated based on the number of product designs $100,000 $20,000 $1,000 Engineering Costs $15,000. Allocated based on assembly line setups. Order Costs $2,000. Allocated based on the number of orders. Allocation Basis Product Designs: Platters 30- Plates 50 Assembly line setups: Platters 10- Plates 20 Number of Orders: Platters 25- Plates 10 In July, 40,000 Platters and 50,000 plates were produced.
Calculate the cost of Plates and Platters for July based on the following information. Direct Costs Direct Materials Direct Labor Plates Platters $200,000 $80,000 Shipping $2,500 Overhead Costs Assigned to products Design Costs $10,000 Allocated based on the number of product designs $100,000 $20,000 $1,000 Engineering Costs $15,000. Allocated based on assembly line setups. Order Costs $2,000. Allocated based on the number of orders. Allocation Basis Product Designs: Platters 30- Plates 50 Assembly line setups: Platters 10- Plates 20 Number of Orders: Platters 25- Plates 10 In July, 40,000 Platters and 50,000 plates were produced.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:1.
Darla's Dishes uses an activity-based costing system to price products.
Calculate the cost of Plates and Platters for July based on the following
information.
Direct Costs
Direct Materials
Direct Labor
Plates
$200,000
$80,000
Shipping
$2,500
Overhead Costs Assigned to products
Platters
$100,000
$20,000
$1,000
Design Costs $10,000 Allocated based on the number of product
designs
Engineering Costs $15,000. Allocated based on assembly line setups.
Order Costs $2,000. Allocated based on the number of orders.
Allocation Basis
Product Designs: Platters 30- Plates 50
Assembly line setups: Platters 10- Plates 20
Number of Orders: Platters 25- Plates 10
In July, 40,000 Platters and 50,000 plates were produced.
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