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Daniel is currently working on assembling some cost accounting numbers for the upcoming year for a client who produces disposable utensils. The factory has the following costs: Factory Insurance - $56,800 Factory Supervisor's Salary - $201,200 Direct Materials (Plastic) - $29,100 Cardboard for Packaging - $13,700 Depreciation on Factory Equipment - $121,400 Assembly Line Worker Wages - $37,700. The Direct Labor (DL) costs consisted of 9,300 DL hours and 5,000 machine hours. Management has decided to proceed using a simple costing system resulting in a plant-wide cost pool. What is the budgeted MOH rate using one plant-wide pool based on machine hours? A) $0.01 B) $11.79 C) $30.10 D) $75.88

Daniel is currently working on assembling some cost accounting numbers for the upcoming year for a client who produces disposable utensils. The factory has the following costs: Factory Insurance - $56,800 Factory Supervisor's Salary - $201,200 Direct Materials (Plastic) - $29,100 Cardboard for Packaging - $13,700 Depreciation on Factory Equipment - $121,400 Assembly Line Worker Wages - $37,700. The Direct Labor (DL) costs consisted of 9,300 DL hours and 5,000 machine hours. Management has decided to proceed using a simple costing system resulting in a plant-wide cost pool. What is the budgeted MOH rate using one plant-wide pool based on machine hours? A) $0.01 B) $11.79 C) $30.10 D) $75.88

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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Daniel is currently working on assembling some cost accounting numbers for the upcoming year for a client who produces disposable utensils. The factory has the following costs: Factory Insurance - $56,800 Factory Supervisor's Salary - $201,200 Direct Materials (Plastic) - $29,100 Cardboard for Packaging - $13,700 Depreciation on Factory Equipment - $121,400 Assembly Line Worker Wages - $37,700. The Direct Labor (DL) costs consisted of 9,300 DL hours and 5,000 machine hours. Management has decided to proceed using a simple costing system resulting in a plant-wide cost pool. What is the budgeted MOH rate using one plant-wide pool based on machine hours? A) $0.01 B) $11.79 C) $30.10 D) $75.88
Transcribed Image Text:Daniel is currently working on assembling some cost accounting numbers for the upcoming year for a client who produces disposable utensils. The factory has the following costs: Factory Insurance - $56,800 Factory Supervisor's Salary - $201,200 Direct Materials (Plastic) - $29,100 Cardboard for Packaging - $13,700 Depreciation on Factory Equipment - $121,400 Assembly Line Worker Wages - $37,700. The Direct Labor (DL) costs consisted of 9,300 DL hours and 5,000 machine hours. Management has decided to proceed using a simple costing system resulting in a plant-wide cost pool. What is the budgeted MOH rate using one plant-wide pool based on machine hours? A) $0.01 B) $11.79 C) $30.10 D) $75.88
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