Mathematical Financial Annual production in units 45,000 90,000 Direct material costs $180,000 $360,000 $ 90,000 Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours $180,000 4,500 9,000 30,000 60,000 Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total Machining costs Setup costs Inspection costs $360,000 108,000 117,000 Required 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. 3. How might Sander's managers use the new cost information from its activity-based costing system to better manage its business?

Mathematical Financial Annual production in units 45,000 90,000 Direct material costs $180,000 $360,000 $ 90,000 Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours $180,000 4,500 9,000 30,000 60,000 Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total Machining costs Setup costs Inspection costs $360,000 108,000 117,000 Required 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. 3. How might Sander's managers use the new cost information from its activity-based costing system to better manage its business?

Name: ABC, process costing. Sander Company produces mathematical and nancial
Uploaded: 2024-03-20T06:32:49.000Z
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Description: ABC, process costing. Sander Company produces mathematical and nancial calculators and operates at capacity. Data related to the two products are presented here: MathematicalFinancialAnnual production in units45,00090,000Direct material costs$180,000

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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