Jackson Enterprises manufactures two products-a basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three activities for allocation of indirect costs. Activity Materials receiving Production setup Quality inspection Cost Driver Number of parts Number of setups Inspection time Cost-Allocation Rate $2.00 per part $500.00 per setup $90 per hour A production run for the basic model is 250 units, for the advanced model, 100 units. Each unit of product consumes the following activities: Number of Parts 10 Basic Gizmo Advanced Gizmo O A. Direct costs for the two products are as follows: Direct Materials $50.00 $95.00 Basic Gizmo Advanced Gizmo O D. $37. B. $65. C. 15 The amount of overhead allocated to one unit of the basic model would be $592. Number of Setups 1 setup per production run 1 setup per production run $162. Direct Labor $75.00 $125.00 Inspection Time 10 minutes 20 minutes <

Jackson Enterprises manufactures two products-a basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three activities for allocation of indirect costs. Activity Materials receiving Production setup Quality inspection Cost Driver Number of parts Number of setups Inspection time Cost-Allocation Rate $2.00 per part $500.00 per setup $90 per hour A production run for the basic model is 250 units, for the advanced model, 100 units. Each unit of product consumes the following activities: Number of Parts 10 Basic Gizmo Advanced Gizmo O A. Direct costs for the two products are as follows: Direct Materials $50.00 $95.00 Basic Gizmo Advanced Gizmo O D. $37. B. $65. C. 15 The amount of overhead allocated to one unit of the basic model would be $592. Number of Setups 1 setup per production run 1 setup per production run $162. Direct Labor $75.00 $125.00 Inspection Time 10 minutes 20 minutes <

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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