SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this year's budget relating to the production of these two products: Units to be produced ABC XYZ 4,000 6,000 Machine-hours expected 80 160 Direct labor-hours expected 160 240 Materials handling (number of moves) 48 56 Machine setups (number of setups) 16 12 The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured: Expected Total Costs Direct Labor Wages Materials handling $40,000 $3,200 Labor-related overhead $33,600 Machine setups $5,600 What is the expected overhead allocated per unit of product ABC? NOTE: Round all per-unit amounts to the nearest cent. Select one: a. $1.17 b. None of the amounts listed. ○ c. $4.53 ○ d. $8.24 O e. $4.14
SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this year's budget relating to the production of these two products: Units to be produced ABC XYZ 4,000 6,000 Machine-hours expected 80 160 Direct labor-hours expected 160 240 Materials handling (number of moves) 48 56 Machine setups (number of setups) 16 12 The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured: Expected Total Costs Direct Labor Wages Materials handling $40,000 $3,200 Labor-related overhead $33,600 Machine setups $5,600 What is the expected overhead allocated per unit of product ABC? NOTE: Round all per-unit amounts to the nearest cent. Select one: a. $1.17 b. None of the amounts listed. ○ c. $4.53 ○ d. $8.24 O e. $4.14
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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Transcribed Image Text:SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this year's budget relating to the production of these
two products:
Units to be produced
ABC XYZ
4,000 6,000
Machine-hours expected
80 160
Direct labor-hours expected
160
240
Materials handling (number of moves)
48
56
Machine setups (number of setups)
16
12
The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured:
Expected Total Costs
Direct Labor Wages
Materials handling
$40,000
$3,200
Labor-related overhead $33,600
Machine setups
$5,600
What is the expected overhead allocated per unit of product ABC?
NOTE: Round all per-unit amounts to the nearest cent.
Select one:
a. $1.17
b. None of the amounts listed.
○ c. $4.53
○ d. $8.24
O e. $4.14
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