Business
Business, 05.11.2020 18:50, Yoma321

Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home model. Since the introduction of the new product, profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing. Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,254,000 based on production of 350,000 handheld consoles and 107,000 home consoles. Direct labor and direct materials costs were as follows:
Handheld Home Total
Direct labor $1,158,500 $409,000 $1,567,500
Materials 800,000 657,000 1,457,000
Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows:
Activity Level
Cost Driver Costs Assigned Handheld Home Total
Number of production runs $540,000 35 10 45
Quality tests performed 522,000 13 16 29
Shipping orders processed 192,000 110 50 160
Total overhead $1,254,000
Required:
How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product?

answer
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 19:30, gymnastattack
Which of the following correctly describes the accounting for indirect labor costs? indirect labor costs are product costs and are expensed as incurred. indirect labor costs are period costs and are expensed when the manufactured product is sold. indirect labor costs are period costs and are expensed as incurred. indirect labor costs are product costs and are expensed when the manufactured product is sold.
Answers: 3
image
Business, 22.06.2019 21:00, liamgreene90
You have $5,300 to deposit. regency bank offers 6 percent per year compounded monthly (.5 percent per month), while king bank offers 6 percent but will only compounded annually. how much will your investment be worth in 17 years at each bank
Answers: 3
image
Business, 23.06.2019 02:30, yaxcalandreya
Tara and her parents want to save at least $40,000 for college in 8 years. which statement describes the most effective savings plan for tara and her parents to meet their goal? tara and her parents should make deposits of $300 every month into a college savings account. tara and her parents should make deposits of $450 every month into a college savings account. tara and her parents should make deposits of $3,000 every year into a college savings account. tara and her parents should make deposits of $4,000 every year into a college savings account
Answers: 1
image
Business, 23.06.2019 08:00, michellebreshears451
Whom do progressive taxes assess? a. only a large percentage of high-income households b. only a large percentage of organizations c. a large percentage of high-income households and organizations d. a large percentage of low-income households e. a small percentage of high-income households
Answers: 1
Do you know the correct answer?
Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are sm...

Questions in other subjects: