MA1 - #30 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Use of Driver by Use of Cost Driver Deluxe Cost Driver and Estimated Cost Pool Level of Activity Estimated Overhead Cost by Compact Equipment 100 setups $20,000 65 setups 35 setups Setup Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control 200 inspections $22,000 150 inspections 50 inspections Machining 9,000 machine hours $18,000 5,000 machine 4,000 machine hours hours Total Overhead Cost $81,000 What is the total overhead cost applied to Deluxe using activity-based costing? $53,750 $57,564 $23,945 $76,271
MA1 - #30 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Use of Driver by Use of Cost Driver Deluxe Cost Driver and Estimated Cost Pool Level of Activity Estimated Overhead Cost by Compact Equipment 100 setups $20,000 65 setups 35 setups Setup Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control 200 inspections $22,000 150 inspections 50 inspections Machining 9,000 machine hours $18,000 5,000 machine 4,000 machine hours hours Total Overhead Cost $81,000 What is the total overhead cost applied to Deluxe using activity-based costing? $53,750 $57,564 $23,945 $76,271
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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