The following information is provided for Crank It Up Corp., a manufacturer of stereo systems. Crank It Up Corp. manufactures two different stereo systems: Feel the Beat model and Hurt My Ears model. Activity Total Budgeted Cost Allocation Base Setup $50,100 Number of setups Machine maintenance $40,200 Number of machine hours Total $90,300 Information Feel the Beat Hurt My Ears Total Units Direct labor hours 1,710 2,200 3,910 Number of setups 260 200 460 Number of machine hours 1,690 1,080 2,770 Crank It Up Corp. plans to produce 520 Feel the Beat systems and for Hurt My Ear systems, 700. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 2. Compute the expected indirect manufacturing cost of each product.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The following information is provided for Crank It Up Corp., a manufacturer of stereo systems. Crank It Up Corp. manufactures two different stereo systems: Feel the Beat model and Hurt My Ears model.
| Activity | Total Budgeted Cost | Allocation Base |
|---|---|---|
| Setup | $50,100 | Number of setups |
| Machine maintenance | $40,200 | Number of machine hours |
| Total | $90,300 |
| Information | Feel the Beat | Hurt My Ears | Total Units |
|---|---|---|---|
| Direct labor hours | 1,710 | 2,200 | 3,910 |
| Number of setups | 260 | 200 | 460 |
| Number of machine hours | 1,690 | 1,080 | 2,770 |
Crank It Up Corp. plans to produce 520 Feel the Beat systems and for Hurt My Ear systems, 700.
(Round your answers to two decimal places when needed and use rounded answers for all future calculations).
2. Compute the expected indirect
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