Figure 11-1Ubben Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows:Model X Model YUnits produced 20,000 40,000Machine hours 8,000 10,000Direct labour hours 14,000 16,000Engineering labour (hours) 1,000 1,400Setups 40 60The following costs are reported:Engineering £ 48,000Setups 100,000Machine-related overhead 144,000 Refer to Figure 11-1. Setups would be classified as a A. unit-level activity.B. facility-level activity.C. batch-level activity.D. total-level activity.
Figure 11-1Ubben Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows:Model X Model YUnits produced 20,000 40,000Machine hours 8,000 10,000Direct labour hours 14,000 16,000Engineering labour (hours) 1,000 1,400Setups 40 60The following costs are reported:Engineering £ 48,000Setups 100,000Machine-related overhead 144,000 Refer to Figure 11-1. Setups would be classified as a A. unit-level activity.B. facility-level activity.C. batch-level activity.D. total-level activity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Figure 11-1Ubben Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows:Model X Model YUnits produced 20,000 40,000Machine hours 8,000 10,000Direct labour hours 14,000 16,000Engineering labour (hours) 1,000 1,400Setups 40 60The following costs are reported:Engineering £ 48,000Setups 100,000Machine-related overhead 144,000 Refer to Figure 11-1. Setups would be classified as a A. unit-level activity.B. facility-level activity.C. batch-level activity.D. total-level activity.
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