Hamilton, a decorative wall clock manufacturer uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Activity Materials handling Number of parts Machining Machine hours Assembling Number of parts Packaging Number of finished clocks What is the cost of machining per clock? Multiple Choice Allocation Base $144.00 Cost Allocation Rate $ 0.08 7.20 0.35 2.70

Hamilton, a decorative wall clock manufacturer uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Activity Materials handling Number of parts Machining Machine hours Assembling Number of parts Packaging Number of finished clocks What is the cost of machining per clock? Multiple Choice Allocation Base $144.00 Cost Allocation Rate $ 0.08 7.20 0.35 2.70

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Drilling Company uses activity-based costing and provides this information: Manufacturing Activity Cost Driver Driver Rate Materials handling Number of parts $ 0.60 Machinery Number of machine hours 51.00 Assembly Number of parts 2.85 Inspection Number of finished units 30.00 Drilling has just completed 80 units of a component for a customer. Each unit required 100 parts and 3 machine hours. The prime cost is $1,300 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 80 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $180 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $300 per unit. Compute the full product cost per unit, including…
One of Concord Company's activity cost pools is machine setups with estimated overhead of $220000. Concord produces sparklers (320 setups) and lighters (680 setups). How much of the machine setup cost pool should be assigned to sparklers? $220000 $70400 O $110000 O $149600
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Vikram
1.
Using the current traditional system of allocating overhead costs based on a single rate based on labor hours, determine the gross profit per unit for the brass style of faucet.