Exercise 9-38 and 9-39 (Algo)Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the twoproducts follow.V-1V-2Units producedDirect materials cost per unitMachine hours per unitProduction runs per month1,00010,000$2428040Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at theplant follow.Machine depreciationSetup laborMaterial handling$48,00022,80015,360$86,160TotalRequired:a. Upriver currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the month? (Roundyour answer to 2 decimal places.)b. Upriver is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machinedepreciation, production runs for setup labor, and direct material dollars for material handling. Compute the cost driver rates for theproposed system at Upriver. (Round "Machine depreciation" answer to 2 decimal places.)Overhead rateb. Machine depreciationper machine hourper machine hourper production runa.Setup laborMaterial handling% direct material cost

Name: Exercise 9-38 and 9-39 (Algo)Upriver Parts manufactures two products,
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Description: Exercise 9-38 and 9-39 (Algo)Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the twoproducts follow.V-1V-2Units producedDirect materials cost per unitMachine hours per unitProduction r

The question is based on the concept of Cost Accounting.

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Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. V-1 Units produced Direct materials cost per unit Machine hours per unit Production runs per month V-2 1,000 2 $ 4 1 2 80 10,000 40 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. SAR O0e

Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. V-1 Units produced Direct materials cost per unit Machine hours per unit Production runs per month V-2 1,000 2 $ 4 1 2 80 10,000 40 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. SAR O0e

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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