Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 5 Labor hours per unit 2 Under an activity-based costing system, what is the per-unit overhead cost of Y? a. $440 O b. $282 Oc. None of the given answers O d. $164 21 2)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses
activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted
cost, and related cost driver is identified below.
Activity
Cost
Cost Driver
Material handling
$225,000
Number of parts
Material insertion
2,475,000
Number of parts
Automated machinery
840,000
Machine hours
Finishing
170,000
Direct labor hours
Packaging
170,000
Orders shipped
Total
$3.880,000
The following information pertains to the three product lines for next year:
Y
Units to be produced
10,000
5,000
2,000
Orders to be shipped
1,000
500
200
Number of parts per unit
10
15
25
Machine hours per unit
1
3
Labor hours per unit
2
Transcribed Image Text:XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3.880,000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 Labor hours per unit 2
Orders to be shipped
1,000
500
200
Number of parts per unit
10
15
25
Machine hours per unit
1
5
Labor hours per unit
2
2
2
Under an activity-based costing system, what is the per-unit overhead cost of Y?
a. $440
O b. $282
Oc.
None of the given answers
O d. $164
O e. $272
Transcribed Image Text:Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 5 Labor hours per unit 2 2 2 Under an activity-based costing system, what is the per-unit overhead cost of Y? a. $440 O b. $282 Oc. None of the given answers O d. $164 O e. $272
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