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TC Company makes four types of patio sets: wood, plastic, wicker, and aluminum. Data regarding the four products follows: DLHs/unit Annual Production 1,000 units 2,000 units 5,000 units 10,000 units Wood Plastic Wicker Aluminum Additional information about the company follows: • Wood sets require $40 in direct materials per unit, plastic sets require $20, wicker sets require $60 and aluminum sets require $50. • The direct labor wage rate for all production except for the aluminum sets is $15 per hour. Aluminum sets are more difficult to produce, so the wage rate for direct labor is $20 per hour. • Wood and wicker sets go through a special painting process. Wood, plastic, and wicker sets all go through the sanding process. The ABC system used for allocating Manufacturing Overhead Costs has the following activity pools: Level of Activity 2.0 1.0 5.0 3.0 Estimated Cost Activity Cost Pool Activity Measure Mach setups Wood Plastic Wicker Aluminum $136,000 100 100 500 $30,000 250 1,250 # of setups #pints used 1,000 Painting Sanding # machine hrs. $17,500 250 500 1,000 Gen. factory # DLHS $354,000 2,000 2,000 25,000 30,000 What is the total cost per unit under the ABC system for wicker patio sets? Select one: O a. $45.00 O b. $135.00 O c. $147.50 O d. $180.00

TC Company makes four types of patio sets: wood, plastic, wicker, and aluminum. Data regarding the four products follows: DLHs/unit Annual Production 1,000 units 2,000 units 5,000 units 10,000 units Wood Plastic Wicker Aluminum Additional information about the company follows: • Wood sets require $40 in direct materials per unit, plastic sets require $20, wicker sets require $60 and aluminum sets require $50. • The direct labor wage rate for all production except for the aluminum sets is $15 per hour. Aluminum sets are more difficult to produce, so the wage rate for direct labor is $20 per hour. • Wood and wicker sets go through a special painting process. Wood, plastic, and wicker sets all go through the sanding process. The ABC system used for allocating Manufacturing Overhead Costs has the following activity pools: Level of Activity 2.0 1.0 5.0 3.0 Estimated Cost Activity Cost Pool Activity Measure Mach setups Wood Plastic Wicker Aluminum $136,000 100 100 500 $30,000 250 1,250 # of setups #pints used 1,000 Painting Sanding # machine hrs. $17,500 250 500 1,000 Gen. factory # DLHS $354,000 2,000 2,000 25,000 30,000 What is the total cost per unit under the ABC system for wicker patio sets? Select one: O a. $45.00 O b. $135.00 O c. $147.50 O d. $180.00

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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TC Company makes four types of patio sets: wood, plastic, wicker, and aluminum. Data regarding the four products follows: DLHs/unit Annual Production 1,000 units 2,000 units 5,000 units 10,000 units Wood Plastic Wicker Aluminum Additional information about the company follows: • Wood sets require $40 in direct materials per unit, plastic sets require $20, wicker sets require $60 and aluminum sets require $50. The direct labor wage rate for all production except for the aluminum sets is $15 per hour. Aluminum sets are more difficult to produce, so the wage rate for direct labor is $20 per hour. • Wood and wicker sets go through a special painting process. • Wood, plastic, and wicker sets all go through the sanding process. The ABC system used for allocating Manufacturing Overhead Costs has the following activity pools: Level of Activity ● Estimated Cost Wood Plastic Wicker Aluminum $136,000 100 100 $30,000 250 1,000 500 1,250 $17,500 250 500 1,000 $354,000 2,000 2,000 25,000 What is the total cost per unit under the ABC system for wicker patio sets? 2.0 1.0 5.0 3.0 Activity Cost Pool Activity Measure Mach setups # of setups # pints used # machine hrs # DLHS Painting Sanding Gen. factory Select one: a. $45.00 b. $135.00 c. $147.50 d. $180.00 30,000
Transcribed Image Text:TC Company makes four types of patio sets: wood, plastic, wicker, and aluminum. Data regarding the four products follows: DLHs/unit Annual Production 1,000 units 2,000 units 5,000 units 10,000 units Wood Plastic Wicker Aluminum Additional information about the company follows: • Wood sets require $40 in direct materials per unit, plastic sets require $20, wicker sets require $60 and aluminum sets require $50. The direct labor wage rate for all production except for the aluminum sets is $15 per hour. Aluminum sets are more difficult to produce, so the wage rate for direct labor is $20 per hour. • Wood and wicker sets go through a special painting process. • Wood, plastic, and wicker sets all go through the sanding process. The ABC system used for allocating Manufacturing Overhead Costs has the following activity pools: Level of Activity ● Estimated Cost Wood Plastic Wicker Aluminum $136,000 100 100 $30,000 250 1,000 500 1,250 $17,500 250 500 1,000 $354,000 2,000 2,000 25,000 What is the total cost per unit under the ABC system for wicker patio sets? 2.0 1.0 5.0 3.0 Activity Cost Pool Activity Measure Mach setups # of setups # pints used # machine hrs # DLHS Painting Sanding Gen. factory Select one: a. $45.00 b. $135.00 c. $147.50 d. $180.00 30,000
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