Cup Company produces products in two Departments. The following information has been provided about these two departments: unt Direct Labour Machine Hours Labour Hours A $5,200,000 Machine Hours 50,000 20,000 Total Department Overhead Machine Hours Capacity Labour Hours Capacity The following information has been provided about Job R56: a. $940. b. $1,280. c. $1,643. d. $1,663. A B Total $2,800,000 $8,000,000 so Labour Hours $150.00 $25.00 5 4 20,000 80,000 B $28.00 $160.00 2 12 70,000 100,000 If Cup Company uses a plant-wide costing system using labour hours as the cost driver the total cost for Job R56 will be:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cup Company produces products in two Departments. The following information has
been provided about these two departments:
unt
Total Department Overhead
Direct Labour
Machine Hours
Labour Hours
A
$5,200,000
Machine Hours
50,000
20,000
Machine Hours Capacity
Labour Hours Capacity
The following information has been provided about Job R56:
a. $940.
b. $1,280.
c. $1,643.
d. $1,663.
A
B
Total
$2,800,000 $8,000,000
Labour Hours
so
$150.00
$25.00
5
4
20,000
80,000
B
$28.00
$160.00
2
12
70,000
100,000
If Cup Company uses a plant-wide costing system using labour hours as the cost driver
the total cost for Job R56 will be:
Transcribed Image Text:Cup Company produces products in two Departments. The following information has been provided about these two departments: unt Total Department Overhead Direct Labour Machine Hours Labour Hours A $5,200,000 Machine Hours 50,000 20,000 Machine Hours Capacity Labour Hours Capacity The following information has been provided about Job R56: a. $940. b. $1,280. c. $1,643. d. $1,663. A B Total $2,800,000 $8,000,000 Labour Hours so $150.00 $25.00 5 4 20,000 80,000 B $28.00 $160.00 2 12 70,000 100,000 If Cup Company uses a plant-wide costing system using labour hours as the cost driver the total cost for Job R56 will be:
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