Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E8 Product R4 Total Labour-related DLHs $201,717 4,800 4,500 9,300 Machine setups setups 69,020 400 300 700 General factory MHs 140,553 3,300 3,000 6,300 $411,290 Bewig produces 10,000 of E8 and 15,000 of R4 annually. The overhead applied to each unit of Product E8 under activity-based costing is closest to: Question 11 options: 1) $3.94 2) $19.41 3) $41.13 4) $21.72
Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E8 Product R4 Total Labour-related DLHs $201,717 4,800 4,500 9,300 Machine setups setups 69,020 400 300 700 General factory MHs 140,553 3,300 3,000 6,300 $411,290 Bewig produces 10,000 of E8 and 15,000 of R4 annually. The overhead applied to each unit of Product E8 under activity-based costing is closest to: Question 11 options: 1) $3.94 2) $19.41 3) $41.13 4) $21.72
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...
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Bewig, Inc., manufactures and sells two products: Product E8 and Product R4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | ||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product E8 | Product R4 | Total |
| Labour-related | DLHs | $201,717 | 4,800 | 4,500 | 9,300 |
| Machine setups | setups | 69,020 | 400 | 300 | 700 |
| General factory | MHs | 140,553 | 3,300 | 3,000 | 6,300 |
| $411,290 |
Bewig produces 10,000 of E8 and 15,000 of R4 annually.
The overhead applied to each unit of Product E8 under activity-based costing is closest to:
Question 11 options:
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