FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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SCS Co. uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. SCS has provided their costing department the following information from this year’s budget relating to the production of these two products:
ABC | XYZ | |
---|---|---|
Units to be produced | 4,000 | 6,000 |
Machine-hours expected | 80 | 160 |
Direct labor-hours expected | 160 | 240 |
Materials handling (number of moves) | 48 | 56 |
Machine setups (number of setups) | 16 | 12 |
The following costs are expected to be incurred throughout the year and are related to the cost drivers being measured:
Expected Total Costs | |
---|---|
Direct Labor Wages | $40,000 |
Materials handling | $3,200 |
Labor-related |
$33,600 |
Machine setups | $5,600 |
What is the expected overhead allocated to product XYZ?
NOTE: Round all per-unit costs to the nearest cent.
Select one:
a. None of the amounts listed.
b. $18,116.96
c. $22,560.00
d. $21,883.12
e. $24,283.12
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