During the second year of operations, RetroSound Company continues to produce two types of units. deluxe and regular. Product- Costing Data Activity Usage Measures Units produced per year Prime costs Direct labor hours Machine hours Production runs Number of moves Deluxe Regular Total 5,000 50,000 55,000 $39,000 $369,000 $408,000 5,000 45,000 50,000 10,000 90,000 1,00,000 10 15 120 60 180 Activity Cost Data (Overhead Activities) Activity Activity driver Activity cost Setups Material handling Power Testing Total Production runs $60,000 Number of moves 30,000 Machine hours 50,000 Direct labor hours 40,000 $180,000 Requred A. Determine the unit cost for each model using direct labor hours to apply overhead. (Calculate a POHR first) B. Determine the unit cost for each model using the four
During the second year of operations, RetroSound Company continues to produce two types of units. deluxe and regular. Product- Costing Data Activity Usage Measures Units produced per year Prime costs Direct labor hours Machine hours Production runs Number of moves Deluxe Regular Total 5,000 50,000 55,000 $39,000 $369,000 $408,000 5,000 45,000 50,000 10,000 90,000 1,00,000 10 15 120 60 180 Activity Cost Data (Overhead Activities) Activity Activity driver Activity cost Setups Material handling Power Testing Total Production runs $60,000 Number of moves 30,000 Machine hours 50,000 Direct labor hours 40,000 $180,000 Requred A. Determine the unit cost for each model using direct labor hours to apply overhead. (Calculate a POHR first) B. Determine the unit cost for each model using the four
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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