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Compute the indirect manufacturing costs allocated to each product using activity based costing.

Compute the indirect manufacturing costs allocated to each product using activity based costing.

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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Compute the indirect manufacturing costs allocated to each product using activity based costing.
Q Q BIU SAY 田。 三 ▼ Arial 12 f* A D 35 36 2. ABC Corp uses an Activity Based Costing system. The accountants at ABC have identified three major activities and their related cost drivers. ABC manufactures Hats, Coats and Mittens. 37 38 Cost Driver 39 Activity 40 Materials Processing Direct Materials Cost 41 Machine Main tenance Maintenance Hours 42 Measurement Weighing of Goods 43 44 Direct Costs for Each Product for this month are as follows: Other Cost Driver Direct Materials Cost Maintenance Hours(in $) 48 Weighing of Goods 45 Hats Coats Mittens 5% 24% 11% 46 35% 30% 30% 24% 20% 32% 47 35% 28% 26% 49 Indirect Costs for the month is as follows: 50 51 $38,000 52 Materials Processing Machine Maintenance 54 Measurement Total $25,000 53 $23,000 $86,000 55 56 57 Required: Test Sheet
Transcribed Image Text:Q Q BIU SAY 田。 三 ▼ Arial 12 f* A D 35 36 2. ABC Corp uses an Activity Based Costing system. The accountants at ABC have identified three major activities and their related cost drivers. ABC manufactures Hats, Coats and Mittens. 37 38 Cost Driver 39 Activity 40 Materials Processing Direct Materials Cost 41 Machine Main tenance Maintenance Hours 42 Measurement Weighing of Goods 43 44 Direct Costs for Each Product for this month are as follows: Other Cost Driver Direct Materials Cost Maintenance Hours(in $) 48 Weighing of Goods 45 Hats Coats Mittens 5% 24% 11% 46 35% 30% 30% 24% 20% 32% 47 35% 28% 26% 49 Indirect Costs for the month is as follows: 50 51 $38,000 52 Materials Processing Machine Maintenance 54 Measurement Total $25,000 53 $23,000 $86,000 55 56 57 Required: Test Sheet
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