Edge Manufacturing produces two types of entry doors: Deluxe andStandard. The assignment basis for support costs has been directlabor dollars. For 2009, Edge Manufacturing compiled the followingdata for the two products:DeluxeStandardSales units$50,000$400,000Sales price per unit$650.00 $475.00Direct material and labor costs per $180.00 $130.00unitManufacturing support costs per unit $ 80.00$120.00Last year, Edge Manufacturing purchased an expensive roboticssystem to allow for more decorative door products in the deluxeproduct line. The CFO suggested that an ABC analysis could bevaluable to help evaluate a product mix and promotion strategy for thenext sales campaign.She obtained the following ABC information for 20X5:Cost DriverActivitySetupsMachine- # of machineCostTotalDeluxe Standard# of setups$ 500,000$44,000,000 | 600,000 300,000 |300,000500400100relatedhoursPacking# of shipments $ 5,000,000 | 250,000 |50,000200,000N.B.: #= numberRequired:a. Using the activity-based costing data presented above:1. Compute the cost-driver rate for each overhead activity.2. Compute the manufacturing overhead cost per unit for eachtype of entry door.3. Compute the total cost to manufacture one unit of each typeof entry door.

Name: Edge Manufacturing produces two types of entry doors: Deluxe andStand
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Description: Edge Manufacturing produces two types of entry doors: Deluxe andStandard. The assignment basis for support costs has been directlabor dollars. For 2009, Edge Manufacturing compiled the followingdata for the two products:DeluxeStandardSales units$50,

Activity-based costing is used to develop a better understanding of costs, which enables businesses…

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Edge Manufacturing produces two types of entry doors: D Standard. The assignment basis for support costs has bee abor dollars. For 2009, Edge Manufacturing compiled the data for the two products: Deluxe Sta Sales units $50,000 $4C Sales price per unit Direct material and labor costs per $180.00 $650.00 $47 $13 unit

Edge Manufacturing produces two types of entry doors: D Standard. The assignment basis for support costs has bee abor dollars. For 2009, Edge Manufacturing compiled the data for the two products: Deluxe Sta Sales units $50,000 $4C Sales price per unit Direct material and labor costs per $180.00 $650.00 $47 $13 unit

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter19: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 6BE: Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles...

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