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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Helton Fumiture Corporation has identified activity centers to which overhead costs
are assigned. The cost pool amounts for these centers and their sekcted activity
drivers for 2012 are as follows.
Activity
Centers Costs
Activity Drivers
Urilities
$300,000
60,000 machine hours
Scheduling and setup
273,000
780 setups
Material handling
640,000
1,600,000 pounds of material
The company's products and other opertating slatisties follow
Products
Dieet costs
S80,000
$80,00
$90,000
Machine bours
30,000
10,000
20,000
Number of setups
130
380
270
Pounds of material
500,000
300,000
800,000
Number of units produced
40,000
20,000
60,000
Direct labor hours
32.000
18,000
50,000
Required:
2. Determine unit product cost using the apyropriate cost drivers( ABC) fet cach of
the products.
b. Before it installed an ABC system, the company used a conventiona!
costing(Simple) system and allocated factory overhesd to products using đirect labor
tours. Determine unit costs for each of the products.
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