Mathematics, 05.10.2020 15:01, sngarcia
Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2
The following data are for the two products produced by Tadros Company.
Product A Product B
Direct materials$15 per unit $30 per unit
Direct labor hours 0.5 DLH per unit 1.5 DLH per unit
Machine hours 0.4 MH per unit 1.2 MH per unit
Batches 200 batches 360 batches
Volume 16,000 units 3,600 units
Engineering modifications 16 modifications 84 modifications
Number of customers 800 customers 700 customers
Market price$55 per unit $220 per unit
The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.
CostsDriver
Indirect manufacturing
Engineering support$53,600 Engineering modifications
Electricity 53,600 Machine hours
Setup costs 160,800 Batches
Nonmanufacturing
Customer service 142,500 Number of customers
Answers: 1
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Problem 17-1A Comparing costs using ABC with the plantwide overhead rate LO P1, P3, A1, A2
The foll...
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