Réquired: A. Prepare overhead analysis sheet to determine the total overhead allocated to production departments. NB: Round all figures up to the nearest whole number. B. Calculate the overhead absorption rates using an appropriate base C. Assuming PTS manufactures two products: Mang and Banny. Mang has a direct cost of $100. It's manufacturing process uses 10 hours in Mixing, 10 hours in Assembly and 2 hours in finishing department. Banny has a direct cost of $200 and each unit requires 10 hours in Mixing, 20 hours in Assembly and 20 hours in Finishing. Calculate the manufacturing costs assigned to each unit of product.
Réquired: A. Prepare overhead analysis sheet to determine the total overhead allocated to production departments. NB: Round all figures up to the nearest whole number. B. Calculate the overhead absorption rates using an appropriate base C. Assuming PTS manufactures two products: Mang and Banny. Mang has a direct cost of $100. It's manufacturing process uses 10 hours in Mixing, 10 hours in Assembly and 2 hours in finishing department. Banny has a direct cost of $200 and each unit requires 10 hours in Mixing, 20 hours in Assembly and 20 hours in Finishing. Calculate the manufacturing costs assigned to each unit of product.
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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