Western Manufacturing Corporation manufactures various electronics products and follows a traditional (job-order) costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHS). The company has two products, C18R and G19R, about which it has provided the following data: C18R G19R Direct materials per unit $10.20 $50.50 Direct labour per unit $8.40 $25.20 Direct labour hours per unit 0.40 1.20 Annual production 30,000 10,000 The company's estimated total manufacturing overhead for the year is $720,000 and the company's estimated total direct labour-hours for the year is 24,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: ACDR Activities and Activity Measures Estimated Overhead Cost of Activity Quantity of Activity Supporting direct labour (DLHS) $240,000 560,000 Setting up machines (setups) Parts administration (part types) Total 664,480 $1,464,480 Activities C18R Total 12,000 24,000 Supporting direct labour Setting up machines 1200 1,400 Part administration 1300 6650 G19R 12,000 200 5350

Western Manufacturing Corporation manufactures various electronics products and follows a traditional (job-order) costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHS). The company has two products, C18R and G19R, about which it has provided the following data: C18R G19R Direct materials per unit $10.20 $50.50 Direct labour per unit $8.40 $25.20 Direct labour hours per unit 0.40 1.20 Annual production 30,000 10,000 The company's estimated total manufacturing overhead for the year is $720,000 and the company's estimated total direct labour-hours for the year is 24,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: ACDR Activities and Activity Measures Estimated Overhead Cost of Activity Quantity of Activity Supporting direct labour (DLHS) $240,000 560,000 Setting up machines (setups) Parts administration (part types) Total 664,480 $1,464,480 Activities C18R Total 12,000 24,000 Supporting direct labour Setting up machines 1200 1,400 Part administration 1300 6650 G19R 12,000 200 5350

Name: MBA 521Western Manufacturing Corporation manufactures various electro
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Description: MBA 521Western Manufacturing Corporation manufactures various electronics products and follows a traditional(job-order) costing system in which it applies manufacturing overhead to its products using apredetermined overhead rate based on direct labo

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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