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Nick Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; $300,000; P3. (b) inspections, 120,000; $600,000; P5. and (c) assembly, 140,000; $2,100,000; P15. The total factory overhead to be charged to beer is  $392,000 $190,000. $280,000. $112,000.

Nick Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; $300,000; P3. (b) inspections, 120,000; $600,000; P5. and (c) assembly, 140,000; $2,100,000; P15. The total factory overhead to be charged to beer is  $392,000 $190,000. $280,000. $112,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Nick Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; $300,000; P3. (b) inspections, 120,000; $600,000; P5. and (c) assembly, 140,000; $2,100,000; P15. The total factory overhead to be charged to beer is 

$392,000

$190,000.

$280,000.

$112,000.

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