FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following
information from this year's budget relating to the production of these two products:
Units to be produced
Machine-hours expected
Direct labor-hours expected
Materials handling (number of moves)
Machine setups (number of setups)
The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured:
Expected Total Costs
Direct Labor Wages
Materials handling
Labor-related overhead
Machine setups
$110,000
$8,800
$92,400
$15,400
Select one:
O
O
O
O
O
ABC XYZ
8,000 12,000
440
220
440 660
132
154
44
33
What is the expected overhead allocated per unit of product ABC?
NOTE: Round all per-unit amounts to the nearest cent.
a. $1.61
b. $5.64
c. $11.33
d. $6.23
e. None of the amounts listed.
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Transcribed Image Text:Uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this year's budget relating to the production of these two products: Units to be produced Machine-hours expected Direct labor-hours expected Materials handling (number of moves) Machine setups (number of setups) The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured: Expected Total Costs Direct Labor Wages Materials handling Labor-related overhead Machine setups $110,000 $8,800 $92,400 $15,400 Select one: O O O O O ABC XYZ 8,000 12,000 440 220 440 660 132 154 44 33 What is the expected overhead allocated per unit of product ABC? NOTE: Round all per-unit amounts to the nearest cent. a. $1.61 b. $5.64 c. $11.33 d. $6.23 e. None of the amounts listed.
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