Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct Amaterials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $5 per machine hour, and Finishing, which is applied at the rate of $23 per batch. This month, Sherman made 310 chainsaws, using 1,360 machine hours in 66 batches. What is the total manufacturing cost for one chainsaw?

Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct Amaterials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $5 per machine hour, and Finishing, which is applied at the rate of $23 per batch. This month, Sherman made 310 chainsaws, using 1,360 machine hours in 66 batches. What is the total manufacturing cost for one chainsaw?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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