2. Agrabah Inc. produces luxury carpets for homes and businesses. They reported the following financial information for the previous period: Direct Materials: Direct Labor: Production Manager Salary: 4,000 units used (purchased at $70/unit) hours per employee, employees, each paid at $25/hour 20 150 $7,500 Accounting manager salary: $6,500 Factory Rent: $10,000 Administration building Rent: $2,000 Factory Utilities: Equipment Depreciation: Equipment Maintenance: Total units produced in the period: $3,500 (based on power usage) $1,000 $1,000 (considered a variable expense) 2,000 What is the per-unit cost of inventory produced under absorption costing? A) $150,000 absorption costing? (Roun B) $190,000 C) $200,000 D) $189,000

2. Agrabah Inc. produces luxury carpets for homes and businesses. They reported the following financial information for the previous period: Direct Materials: Direct Labor: Production Manager Salary: 4,000 units used (purchased at $70/unit) hours per employee, employees, each paid at $25/hour 20 150 $7,500 Accounting manager salary: $6,500 Factory Rent: $10,000 Administration building Rent: $2,000 Factory Utilities: Equipment Depreciation: Equipment Maintenance: Total units produced in the period: $3,500 (based on power usage) $1,000 $1,000 (considered a variable expense) 2,000 What is the per-unit cost of inventory produced under absorption costing? A) $150,000 absorption costing? (Roun B) $190,000 C) $200,000 D) $189,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Required information [The following information applies to the questions displayed below.] Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Machining Assembly Maintenance Cafeteria. Machining Assembly Direct Costs $92,000 62,400 38,800 31,000 Total Costs Proportion of Services Used by Maintenance Cafeteria. Machining 0.8 0.2 Required: Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.) Prev 0.6 0.1 1 2 Assembly of 13 0.2 0.1 # www Next > Bi G