Question 11 Molly's Dog Treats is considering the use of activity-based costing. The following information is provided for the production of two product lines: Total Budgeted Costs Allocation Base $75,000 Number of setups Number of machine hours Setup Setup Machine maintenance $30,000 Total $105,000 Molly's Dog Treats expects to produce a total of 11,760 units of Regular Treats and 30,100 of Special Treats. Find the ABC indirect manufacturing cost per unit for each product. Compute the expected indirect manufacturing cost of each product. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). A Regular Treats: 1.25; Special Treats: 3.00 B Reglar Treats: 14,700.00; Special Treats: 90,300.00 Special Treats: 14,700.00; Regular Treats: 90,300.00 Special Treats: 1.25; Regular Treats: 3.00
Question 11 Molly's Dog Treats is considering the use of activity-based costing. The following information is provided for the production of two product lines: Total Budgeted Costs Allocation Base $75,000 Number of setups Number of machine hours Setup Setup Machine maintenance $30,000 Total $105,000 Molly's Dog Treats expects to produce a total of 11,760 units of Regular Treats and 30,100 of Special Treats. Find the ABC indirect manufacturing cost per unit for each product. Compute the expected indirect manufacturing cost of each product. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). A Regular Treats: 1.25; Special Treats: 3.00 B Reglar Treats: 14,700.00; Special Treats: 90,300.00 Special Treats: 14,700.00; Regular Treats: 90,300.00 Special Treats: 1.25; Regular Treats: 3.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 11
Molly's Dog Treats is considering the use of activity-based costing. The following information is provided for the production
of two product lines:
Total Budgeted Costs
Allocation Base
$75,000
Number of setups
Number of machine hours
Setup
Setup
Machine maintenance
$30,000
Total
$105,000
Molly's Dog Treats expects to produce a total of 11,760 units of Regular Treats and 30,100 of Special Treats. Find the ABC
indirect manufacturing cost per unit for each product. Compute the expected indirect manufacturing cost of each product.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
A Regular Treats: 1.25; Special Treats: 3.00
B Reglar Treats: 14,700.00; Special Treats: 90,300.00
Special Treats: 14,700.00; Regular Treats: 90,300.00
Special Treats: 1.25; Regular Treats: 3.00
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