Business, 20.06.2020 23:57, meganwintergirl
Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
Rascon Parcel
Direct materials cost per unit $15 $7
Direct labor cost per unit $ 2.90 $3.80
Direct labor-hours per unit 0.20 0.25
Number of units produced 11,000 47,000
These products are customized to some degree for specific customers.
Required:
1) The company's manufacturing overhead costs for the year are expected to be $376,650. Using the company's traditional costing system, compute the unit product costs for the two products.
2) Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year
Answers: 1
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Harrison Company makes two products and uses a traditional costing system in which a single plantwid...
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