Use the following i nformation to answer questions 3 – 4 : Ellyn’s Doll House Company (EDHC) manufactures large and small doll houses. Historically , EDHC has utilized a traditional job order costing system to allocate manufacturing overhead. They are considering switching to an Activity Based Costing System. (All per unit answers are rounded to the nearest dollar.) EDHC has the following Direct La bor and Direct Material Costs for a large doll house and a small doll house. Large Small Direct Materials $50 $30 Direct Labor 25 15 3. Overhead is applied on the basis of machine hours. It takes 3 machine hours to produce a large doll house and 2 machine hours to produce a small doll house. EDHC produces 2,00 0 large doll houses and 10,000 small doll houses in a year. Total manufacturing overhead is $780,000 . Under the traditional job order costing system, what is the cost of one small doll house (rounded to nearest dollar)?
Answers: 1
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Use the following i nformation to answer questions 3 – 4 : Ellyn’s Doll House Company (EDHC) manufac...
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