Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is as follows: Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 5,000 MH 700 DLH Puppy 4,000 3,000 MH 1,000 DLH Bunny 6,000 2,000 MH 2,300 DLH The total machine running costs incurred during the year is $150,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Bunny during the year? Group of answer choices $30,000 $75,000 $45,000 $48,000

Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is as follows: Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 5,000 MH 700 DLH Puppy 4,000 3,000 MH 1,000 DLH Bunny 6,000 2,000 MH 2,300 DLH The total machine running costs incurred during the year is $150,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Bunny during the year? Group of answer choices $30,000 $75,000 $45,000 $48,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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Floyd Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is provided in the table below. Estimation for Number of Units Produced, Machine Hours Used, and Direct Labor Hours Toy Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 8,000 MH 700 DLH Puppy 3,000 5,000 MH 1,000 DLH Bunny 5,000 4,000 MH 2,300 DLH The total machine running costs incurred during the year is $204,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Puppy during the year? Group of answer choices $8,400 $60,000 $96,000 $48,000
Floyd Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is provided in the table below. Estimation for Number of Units Produced, Machine Hours Used, and Direct Labor Hours Toy Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 8,000 MH 700 DLH Puppy 3,000 5,000 MH 1,000 DLH Bunny 5,000 4,000 MH 2,300 DLH The total machine running costs incurred during the year is $204,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to each unit of Bear? (Round your answer to two decimal points) Group of answer choices $20.00 per unit $9.60 per unit $12.00 per unit $48.00 per unit
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