Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 20, Problem 2CMA
Kimber Company has the following unit costs for the current year:
Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is:
- a. $560,000.
- b. $575,000.
- c. $615,000.
- d. $630,000.
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Students have asked these similar questions
Kimber Company has the following unit costs for the current year:
Raw materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total unit cost
$20.00
25.00
10.00
15.00
$70.00
Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the
total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is:
Oa. $560,000.
Ob. $615,000.
Oc. $630,000.
Od. $575,000.
Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be
$770,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 17,000 hours and 5,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)
A.
$29.41
per labor hour
B.
$1.54
per labor hour
C.
$154.00
per machine hour
D.
$100.00
per machine hour
A. Prepare a cost estimate for a volume level of 128,000 units of product this year.
B. Determine the costs per unit for last year and for this year.
Chapter 20 Solutions
Financial And Managerial Accounting
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