Al-Sabri Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white faucets, respectively. The following additional data apply: |Item BRASS CHROME WHITE Projected sales in units 30,000 50,000 40,000 Per unit data: Selling price $40 $20 $30 Direct materials $8 $ 4 $ 8 Direct labor $15 $3 $9 Overhead cost based on direct labor hours $12 $ 3 $9 Hours per 1000-unit batch: Direct labor hours 40 10 30 Machine hours 25 25 10 Setup hours 1.0 0.5 1.0 Inspection hours 30 20 20 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Direct labor hours 2,900 hours Machine hours 2,400 hours setup hours $465,500 95 setup hours inspection hours $405,000 2,700 inspection hours Required: Using the ABC system, for the brass style of faucet compute the estimated overhead costs and the estimated operating profit per unit.

Al-Sabri Company manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white faucets, respectively. The following additional data apply: |Item BRASS CHROME WHITE Projected sales in units 30,000 50,000 40,000 Per unit data: Selling price $40 $20 $30 Direct materials $8 $ 4 $ 8 Direct labor $15 $3 $9 Overhead cost based on direct labor hours $12 $ 3 $9 Hours per 1000-unit batch: Direct labor hours 40 10 30 Machine hours 25 25 10 Setup hours 1.0 0.5 1.0 Inspection hours 30 20 20 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Direct labor hours 2,900 hours Machine hours 2,400 hours setup hours $465,500 95 setup hours inspection hours $405,000 2,700 inspection hours Required: Using the ABC system, for the brass style of faucet compute the estimated overhead costs and the estimated operating profit per unit.

Name: Al-Sabri Company manufactures and sells three styles of kitchen fauce
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Description: Al-Sabri Company manufactures and sells three styles of kitchen faucets:Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours tomanufacture 1,000-unit batches of brass, chrome, and white faucets, respectively.The following addition

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2PB: Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units...

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