Tremain Company produces and sells two products, Wood and Iron. The following information is available relating to its setup activities: Wood Iron Units produced 240 19,000 Batch size (units) 20 500 Total direct labor hours 2,000 37,000 Cost per setup $ 2,000 $ 2,000 Use of activity-based costing would allocate the following amounts of setup cost to each unit: Note: Rounded to the nearest cent. Wood Iron A) $ 100.00 $ 4.00 B) $ 250.00 $ 775.64 C) $ 4.92 $ 5.00 D) $ 79.00 $ 12.00 E) $ 8.00 $ 0.11
Tremain Company produces and sells two products, Wood and Iron. The following information is available relating to its setup activities: Wood Iron Units produced 240 19,000 Batch size (units) 20 500 Total direct labor hours 2,000 37,000 Cost per setup $ 2,000 $ 2,000 Use of activity-based costing would allocate the following amounts of setup cost to each unit: Note: Rounded to the nearest cent. Wood Iron A) $ 100.00 $ 4.00 B) $ 250.00 $ 775.64 C) $ 4.92 $ 5.00 D) $ 79.00 $ 12.00 E) $ 8.00 $ 0.11
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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Tremain Company produces and sells two products, Wood and Iron. The following information is available relating to its setup activities:
| Wood | Iron | |
|---|---|---|
| Units produced | 240 | 19,000 |
| Batch size (units) | 20 | 500 |
| Total direct labor hours | 2,000 | 37,000 |
| Cost per setup | $ 2,000 | $ 2,000 |
Use of activity-based costing would allocate the following amounts of setup cost to each unit:
Note: Rounded to the nearest cent.
| Wood | Iron | |
|---|---|---|
| A) | $ 100.00 | $ 4.00 |
| B) | $ 250.00 | $ 775.64 |
| C) | $ 4.92 | $ 5.00 |
| D) | $ 79.00 | $ 12.00 |
| E) | $ 8.00 | $ 0.11 |
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