Required information Acoma Co. has identified one of its cost pools to be quality control and has assigned $239,400 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 34,500 inspections annually. Suppose Acoma manufactures two products that consume 20,700 (Product 1) and 13,800 (Product 2) inspections each. Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company's quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma's product lines. Product 1 Product 2 Quality Control Costs

Required information Acoma Co. has identified one of its cost pools to be quality control and has assigned $239,400 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 34,500 inspections annually. Suppose Acoma manufactures two products that consume 20,700 (Product 1) and 13,800 (Product 2) inspections each. Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company's quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma's product lines. Product 1 Product 2 Quality Control Costs

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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