Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial 45,000 Annual production in units 90,000 $360,000 $180,000 9,000 60,000 $180,000 $ 90,000 4,500 30,000 Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total $360,000 108,000 117,000 Machining costs Setup costs Inspection costs
Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial 45,000 Annual production in units 90,000 $360,000 $180,000 9,000 60,000 $180,000 $ 90,000 4,500 30,000 Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total $360,000 108,000 117,000 Machining costs Setup costs Inspection costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How might Sander’s managers use the new cost information from its activity-based costing system to better manage its business?
Transcribed Image Text:Sander Company produces mathematical and financial calculators and op-
erates at capacity. Data related to the two products are presented here:
Mathematical
Financial
45,000
Annual production in units
90,000
$360,000
$180,000
9,000
60,000
$180,000
$ 90,000
4,500
30,000
Direct material costs
Direct manufacturing labor costs
Direct manufacturing labor-hours
Machine-hours
Number of production runs
Inspection hours
45
45
1,200
600
Total manufacturing overhead costs are as follows:
Total
$360,000
108,000
117,000
Machining costs
Setup costs
Inspection costs
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