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Sheffield Company's traditional costing system has accommodated only one pool for MOH to date, allocated based on DL hours. After conversing with the production managers, however, the company's owners have gained insights on the key activities that generate cost in the plant. The three key activities, and the cost drivers identified for each, are as follows, along with their budgeted costs and usages for the year. Machine Setup Material moves Assembly Activity Total (a) MOH rate (b) Your answer is correct. Calculate the MOH rate under the current traditional costing system with one MOH pool and one cost driver. (Round answer to 2 decimal places, e.g. 15.25.) $ Key Activity eTextbook and Media Machine setup Budgeted Cost Material moves Assembly Budgeted Quantity of Cost Driver $90,000 2,000 production runs 79,500 1,590,000 pounds of material moved 50,000 direct labor hours Save for Later Calculate the activity-based rates using the three key activities, costs, and cost drivers. (Round answers to 2 decimal places, e.g. 15.25.) 300,000 $ $469,500 $ $ eTextbook and Media 9.39 /DL hour Activity-based Rate per production run per pound Assistance Used per DL hour Attempts: 0 of 4 used Submit Answer

Sheffield Company's traditional costing system has accommodated only one pool for MOH to date, allocated based on DL hours. After conversing with the production managers, however, the company's owners have gained insights on the key activities that generate cost in the plant. The three key activities, and the cost drivers identified for each, are as follows, along with their budgeted costs and usages for the year. Machine Setup Material moves Assembly Activity Total (a) MOH rate (b) Your answer is correct. Calculate the MOH rate under the current traditional costing system with one MOH pool and one cost driver. (Round answer to 2 decimal places, e.g. 15.25.) $ Key Activity eTextbook and Media Machine setup Budgeted Cost Material moves Assembly Budgeted Quantity of Cost Driver $90,000 2,000 production runs 79,500 1,590,000 pounds of material moved 50,000 direct labor hours Save for Later Calculate the activity-based rates using the three key activities, costs, and cost drivers. (Round answers to 2 decimal places, e.g. 15.25.) 300,000 $ $469,500 $ $ eTextbook and Media 9.39 /DL hour Activity-based Rate per production run per pound Assistance Used per DL hour Attempts: 0 of 4 used Submit Answer

FINANCIAL ACCOUNTING
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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Sheffield Company's traditional costing system has accommodated only one pool for MOH to date, allocated based on DL hours. After conversing with the production managers, however, the company's owners have gained insights on the key activities that generate cost in the plant. The three key activities, and the cost drivers identified for each, are as follows, along with their budgeted costs and usages for the year. Machine Setup Material moves Activity Assembly Total (a) MOH rate (b) Your answer is correct. Calculate the MOH rate under the current traditional costing system with one MOH pool and one cost driver. (Round answer to 2 decimal places, e.g. 15.25.) $ e Textbook and Media Key Activity Budgeted Cost $90,000 Machine setup Material moves Assembly Save for Later 79,500 300.000 Calculate the activity-based rates using the three key activities, costs, and cost drivers. (Round answers to 2 decimal places, e.g. 15.25.) $ $469,500 $ $ Budgeted Quantity of Cost Driver 2,000 production runs 1,590,000 pounds of material moved 50,000 direct labor hours e Textbook and Media 9.39 /DL hour Activity-based Rate per production run per pound Assistance Used per DL hour Attempts: 0 of 4 used Submit Answer
Transcribed Image Text:Sheffield Company's traditional costing system has accommodated only one pool for MOH to date, allocated based on DL hours. After conversing with the production managers, however, the company's owners have gained insights on the key activities that generate cost in the plant. The three key activities, and the cost drivers identified for each, are as follows, along with their budgeted costs and usages for the year. Machine Setup Material moves Activity Assembly Total (a) MOH rate (b) Your answer is correct. Calculate the MOH rate under the current traditional costing system with one MOH pool and one cost driver. (Round answer to 2 decimal places, e.g. 15.25.) $ e Textbook and Media Key Activity Budgeted Cost $90,000 Machine setup Material moves Assembly Save for Later 79,500 300.000 Calculate the activity-based rates using the three key activities, costs, and cost drivers. (Round answers to 2 decimal places, e.g. 15.25.) $ $469,500 $ $ Budgeted Quantity of Cost Driver 2,000 production runs 1,590,000 pounds of material moved 50,000 direct labor hours e Textbook and Media 9.39 /DL hour Activity-based Rate per production run per pound Assistance Used per DL hour Attempts: 0 of 4 used Submit Answer
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