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...
icon
Related questions
Question
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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College