Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is as follows: Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 5,000 MH 700 DLH Puppy 4,000 3,000 MH 1,000 DLH Bunny 6,000 2,000 MH 2,300 DLH The total machine running costs incurred during the year is $150,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Bunny during the year? Group of answer choices $30,000 $75,000 $45,000 $48,000
Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is as follows: Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 5,000 MH 700 DLH Puppy 4,000 3,000 MH 1,000 DLH Bunny 6,000 2,000 MH 2,300 DLH The total machine running costs incurred during the year is $150,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Bunny during the year? Group of answer choices $30,000 $75,000 $45,000 $48,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is as follows:
| Number of units | Machine hours (MH) | Direct labor hours (DLH) | |
| Bear | 2,000 | 5,000 MH | 700 DLH |
| Puppy | 4,000 | 3,000 MH | 1,000 DLH |
| Bunny | 6,000 | 2,000 MH | 2,300 DLH |
The total machine running costs incurred during the year is $150,000. The allocation of machine running costs to these three items is based on machine hours.
How much machine running costs are expected to be allocated to Bunny during the year?
Group of answer choices
$30,000
$75,000
$45,000
$48,000
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