Use this information for Miramar Industries to answer the questions that follow.Miramar Industries manufactures two products: A and B. The manufacturing operation involvesthree overhead activities production setup, materials handling, and general factory activities.Miramar uses activity-based costing to allocate overhead to products. An activity analysis of theoverhead revealed the following estimated costs and activity bases for these activities:ActivityProduction setupMaterials handlingActivity Base$250,000 Number of setups150,000 Number of parts80,000 Number of direct laborCostGeneral overheadhoursEach product's total activity in each of the three areas is as follows:Product AProduct BNumber of setups100300Number of parts40,00020,000Number of direct labor hours8,00012,000What is the activity rate for production setup?O $833 per setupO $2,500 per setupO $625 per setupO $400 per setup

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Description: Use this information for Miramar Industries to answer the questions that follow.Miramar Industries manufactures two products: A and B. The manufacturing operation involvesthree overhead activities production setup, materials handling, and general fa

Given: No. of setups :Product A =100Product B =300 Total cost of production setup=$250000

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Use this information for Miramar Industries to answer the questions that follow. Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities-production setup, materials handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Activity Base Activity Production setup Materials handling Cost $250,000 Number of setups 150,000 Number of parts 80,000 Number of direct labor General overhead hours Each product's total activity in each of the three areas is as follows: Product A Number of setups Number of parts Number of direct labor hours Product B 300 20,000 100 40,000 8,000 12,000 What is the activity rate for production setup? O $833 per setup O $2,500 per setup o $625 per setup o $400 per setup

Use this information for Miramar Industries to answer the questions that follow. Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities-production setup, materials handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Activity Base Activity Production setup Materials handling Cost $250,000 Number of setups 150,000 Number of parts 80,000 Number of direct labor General overhead hours Each product's total activity in each of the three areas is as follows: Product A Number of setups Number of parts Number of direct labor hours Product B 300 20,000 100 40,000 8,000 12,000 What is the activity rate for production setup? O $833 per setup O $2,500 per setup o $625 per setup o $400 per setup

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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Assume that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $144,000 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: Product A Product B Number of machine setups 30 45 Number of setup hours per setup 6 6 If the company uses number of setup hours as the activity measure, what is the activity rate for machine setups? rev: 10_30_2021_QC_CS-283805 Garrison 17e Rechecks 2021-11-13 Multiple Choice $11,825 $12,000 $320 $350
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