Tyler Champs Corp. uses activity-based costing to account for its motorcycle manufacturing process. Company managers have identified three supporting manufacturing activities: inspection, machine setup, and machine maintenance. The budgeted activity costs for 2018 and their allocation bases are as follows: Activity Inspection Machine setup Total budgeted cost Allocation base $6,900 Number of inspections 20,000 Number of setups 2,000 Finishing of machine hours $28,900 Machine maintenance Total Tyler champs expects to produce 20 custom-built motorcycles for the year. The motorcycles are expected to require 60 inspections, 20 setups, and 100 machine hours. Requirements 1. Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each motorcycle. 12.
Tyler Champs Corp. uses activity-based costing to account for its motorcycle manufacturing process. Company managers have identified three supporting manufacturing activities: inspection, machine setup, and machine maintenance. The budgeted activity costs for 2018 and their allocation bases are as follows: Activity Inspection Machine setup Total budgeted cost Allocation base $6,900 Number of inspections 20,000 Number of setups 2,000 Finishing of machine hours $28,900 Machine maintenance Total Tyler champs expects to produce 20 custom-built motorcycles for the year. The motorcycles are expected to require 60 inspections, 20 setups, and 100 machine hours. Requirements 1. Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each motorcycle. 12.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
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