OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. Activity Est. Indirect Activity Costs Materials $67,000 Assembling $256,000 Packaging $80,000 Allocation base Material moves Direct labor hours # of finished units Cost allocation rate $4/move $11/dir. labor hour $1/finished unit The following parts were produced in October with the following information: Part # Produced A 2,050 B 6,000 C 4,950 Materials Costs # Moves Dir. Labor Hrs. $2,800 900 250 $5,500 2,000 425 $7,000 2,600 1,300 Total assembly fees for part B is A. $22,000 B. $1,700 C. $2,750 D. $4,675

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...
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OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system.
Activity
Est. Indirect
Activity Costs
Materials
$67,000
Assembling
$256,000
Packaging
$80,000
Allocation base
Material moves
Direct labor hours
# of finished units
Cost allocation rate
$4/move
$11/dir. labor hour
$1/finished unit
The following parts were produced in October with the following information:
Part
# Produced
A
2,050
B
6,000
C
4,950
Materials Costs
# Moves
Dir. Labor Hrs.
$2,800
900
250
$5,500
2,000
425
$7,000
2,600
1,300
Total assembly fees for part B is
A. $22,000
B. $1,700
C. $2,750
D. $4,675
Transcribed Image Text:OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. Activity Est. Indirect Activity Costs Materials $67,000 Assembling $256,000 Packaging $80,000 Allocation base Material moves Direct labor hours # of finished units Cost allocation rate $4/move $11/dir. labor hour $1/finished unit The following parts were produced in October with the following information: Part # Produced A 2,050 B 6,000 C 4,950 Materials Costs # Moves Dir. Labor Hrs. $2,800 900 250 $5,500 2,000 425 $7,000 2,600 1,300 Total assembly fees for part B is A. $22,000 B. $1,700 C. $2,750 D. $4,675
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