Provide Answer One of Arlow Inc.'s activity cost pools is machine setup, withan estimated overhead (OH) of $180,000. It sets upmachines for plastic chairs (960 setups) and metal chairs(1,440 setups).How much $$ overhead should be assigned to plastic chairssetups?A) $65,000B) $75,000C) $86,400D) $72,000

To assign overhead to the plastic chair setups, we first need to calculate the overhead rate per…

Answered: One of Arlow Inc.'s activity cost pools…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
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One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?
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One of Arlow Inc.'s activity cost pools is machine setup, with an estimated overhead (OH) of $180,000. It sets up machines for plastic chairs (960 setups) and metal chairs (1,440 setups). How much $$ overhead should be assigned to plastic chairs setups? A) $65,000 B) $75,000 C) $86,400 D) $72,000