Business, 11.03.2022 03:30, EthanIsHyper
Thornton Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; the other is a low-caliber board designed to provide limited service at an affordable price. During its most recent accounting period, Thornton incurred $330,000 of inspection cost. Thornton recently established an activity-based costing system that classifies its activities into four categories. Categories and appropriate cost drivers follow:
Direct Labor Hours Number of Batches Number of Inspectors Number of Square Feet
High caliber 10,000 35 4 70,000
Low caliber 25,000 35 3 105,000
Total 35,000 70 7 175,000
Required:
Allocate the inspection cost between the two products assuming that it is driven by:
a. unit-level activities
b. batch-level activities
c. product-level activities
d. facility-level activities.
Answers: 1
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Thornton Company makes two types of circuit boards. One is a high-caliber board designed to accompli...
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