Parkview, Inc. manufactures leaf blowers that sell for $79. Each leaf blower uses $18 in direct materials and $13 in direct labor per unit. Parkview has two activities: Machining, which is applied at the rate of $7 per machine hour, and Finishing, which is applied at the rate of $28 per batch. This month, Parkview made 290 leaf blowers, using 1,490 machine hours in 58 batches. What is the total manufacturing cost for one leaf blower?

Parkview, Inc. manufactures leaf blowers that sell for $79. Each leaf blower uses $18 in direct materials and $13 in direct labor per unit. Parkview has two activities: Machining, which is applied at the rate of $7 per machine hour, and Finishing, which is applied at the rate of $28 per batch. This month, Parkview made 290 leaf blowers, using 1,490 machine hours in 58 batches. What is the total manufacturing cost for one leaf blower?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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