Labor-related overhead costs assigned to Model O are (E) a. $240,000 C. $217,000 $192.000 b $232.000 d

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Luther Manufacturing uses an activity-based cost system. The company produces Model 0
and Model J. Information relating to the two products is as follows:
Model O
Model J
48,000
60,000
Units produced
Machine hours
15,000
17,000
Direct labor hours
16,000
24,000
Material handling (number of moves)
8,000
12,000
Setups
10,000
14,000
Th+following costs are reported:
Material handling
$160,000
Labor-related overhead
480,000
Setups
240,000
Labor-related overhead costs assigned to Model O are (E)
a. $240,000
C.
$217,000
b. $232,000
d.
$192,000
Transcribed Image Text:Luther Manufacturing uses an activity-based cost system. The company produces Model 0 and Model J. Information relating to the two products is as follows: Model O Model J 48,000 60,000 Units produced Machine hours 15,000 17,000 Direct labor hours 16,000 24,000 Material handling (number of moves) 8,000 12,000 Setups 10,000 14,000 Th+following costs are reported: Material handling $160,000 Labor-related overhead 480,000 Setups 240,000 Labor-related overhead costs assigned to Model O are (E) a. $240,000 C. $217,000 b. $232,000 d. $192,000
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