3. Buildz Manufacturing currently produces 1,000 tables per month. The following per unit data for 1,000 tables apply for sales to regular customers: Direct materials £50 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 10 15 30 £105 The plant has capacity for 3,000 tables and is considering expanding production to 3,000 tables. What is the total cost of producing 3,000 tables? A) £255,000 B) £225,000 C) £175,000 D) £235,000

3. Buildz Manufacturing currently produces 1,000 tables per month. The following per unit data for 1,000 tables apply for sales to regular customers: Direct materials £50 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 10 15 30 £105 The plant has capacity for 3,000 tables and is considering expanding production to 3,000 tables. What is the total cost of producing 3,000 tables? A) £255,000 B) £225,000 C) £175,000 D) £235,000

Name: 3. Buildz Manufacturing currently produces 1,000 tables per month.The
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Description: 3. Buildz Manufacturing currently produces 1,000 tables per month.The following per unit data for 1,000 tables apply for sales to regularcustomers:Direct materials£50Direct manufacturing laborVariable manufacturing overheadFixed manufacturing overhe

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
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