Time lert 0:56. XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing Packaging 170,000 Direct labor hours 170.000 Orders shipped Total $3.880.000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 3 Labor hours per unit Under an activity-based costing system, what is the per-unit overhead cost of X? O a. $164 b. None of the given answers
Time lert 0:56. XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing Packaging 170,000 Direct labor hours 170.000 Orders shipped Total $3.880.000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 3 Labor hours per unit Under an activity-based costing system, what is the per-unit overhead cost of X? O a. $164 b. None of the given answers
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![Time left 0:56:08
XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five
activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below.
Activity
Cost
Cost Driver
Material handling
$225,000
Number of parts
Material insertion
2,475,000
Number of parts
Automated machinery
840,000
Machine hours
Finishing
170,000
Direct labor hours
Packaging
170,000
Orders shipped
Total
$3,880.000
The following information pertains to the three product lines for next year:
Y
Units to be produced
10,000
5,000
2,000
Orders to be shipped
1,000
500
200
Number of parts per unit
10
15
25
Machine hours per unit
1
Labor hours per unit
2
Under an activity-based costing system, what is the per-unit overhead cost of X?
O a.
$164
Ob.
None of the given answers
$282](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b6eb620-e97b-44f5-9112-98ee26aac69d%2Fd5a1efb6-0aab-46fe-a545-3a93f827a41a%2Ffkbewcb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Time left 0:56:08
XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five
activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below.
Activity
Cost
Cost Driver
Material handling
$225,000
Number of parts
Material insertion
2,475,000
Number of parts
Automated machinery
840,000
Machine hours
Finishing
170,000
Direct labor hours
Packaging
170,000
Orders shipped
Total
$3,880.000
The following information pertains to the three product lines for next year:
Y
Units to be produced
10,000
5,000
2,000
Orders to be shipped
1,000
500
200
Number of parts per unit
10
15
25
Machine hours per unit
1
Labor hours per unit
2
Under an activity-based costing system, what is the per-unit overhead cost of X?
O a.
$164
Ob.
None of the given answers
$282
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