One of Timothee Manufacturing Company's activity cost pools is quality testing, with an estimated overhead of $144,000. It produces compact models (900 tests) and deluxe models (1,200 tests). How much of the quality testing cost pool should be assigned to compact models? A. $48,050 B. $54,503 C. $61,713 D. $72,506

One of Timothee Manufacturing Company's activity cost pools is quality testing, with an estimated overhead of $144,000. It produces compact models (900 tests) and deluxe models (1,200 tests). How much of the quality testing cost pool should be assigned to compact models? A. $48,050 B. $54,503 C. $61,713 D. $72,506

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 4CE: Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. At the...

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Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63¢ per lb Plastic 12 oz. $1.00 per Ib. Rubber 4 oz. 88¢ per Ib. Direct labor Item Per unit Cost Labor 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $424 The January figures for purchasing, production, and labor are: The company purchased 228,200 pounds of raw materials in January at a cost of 79¢ a pound. Production used 228,200 pounds of raw materials to make 115,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $54,597 variable and $72,000 fixed. Answer the following questions about standard costs. Your answer is partially correct. What is the materials price variance? (Round…
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