Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled: Direct Labor-Hours per unit Annual Production 20,000 units 80,000 units Deluxe 0.4 Standard 0.2 Additional information follows: a. Deluxe models require $17 in DM per unit and Standard models require $10. b. The DL wage rate is $16 per hour. c. Deluxe models are more complex to manufacture than Standard models, and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost pool Activity Measure Estimated Activity Overhead Deluxe Standard Total Cost Machine setups Special processing General factory Number of setups Machine-hours $21,600 $180,000 $288,000 100 80 180 4,000 4,000 24,000 DL-hrs 8,000 16,000 Required: 1- Compute the activity rate for each activity cost pool

Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled: Direct Labor-Hours per unit Annual Production 20,000 units 80,000 units Deluxe 0.4 Standard 0.2 Additional information follows: a. Deluxe models require $17 in DM per unit and Standard models require $10. b. The DL wage rate is $16 per hour. c. Deluxe models are more complex to manufacture than Standard models, and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost pool Activity Measure Estimated Activity Overhead Deluxe Standard Total Cost Machine setups Special processing General factory Number of setups Machine-hours $21,600 $180,000 $288,000 100 80 180 4,000 4,000 24,000 DL-hrs 8,000 16,000 Required: 1- Compute the activity rate for each activity cost pool

Name: Racer X Corporation manufactures two models of motorized go-carts, a
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Description: Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxemodel. The following activity and cost information has been compiled:Direct Labor-Hours per unitAnnual ProductionDeluxe0.420,000 unitsStandard0.280,000 unitsAd

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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