Exercise 17-19 (Algo) Activity-based costing to compute activity rates, overhead cost per unit, and product cost per unit LO P3 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Rounded Edge Squared Edge $ 46,800 31,200 79,400 $ 157,400 15,600 $ 10.09 $ 34,800 11,600 41,400 $ 87,800 Total $ 81,600 42,800 120,800 $ 245,200 Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit 11,600 $ 7.57 Northwest's controller wants to apply activity-based costing to allocate the $120,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected.
Exercise 17-19 (Algo) Activity-based costing to compute activity rates, overhead cost per unit, and product cost per unit LO P3 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Rounded Edge Squared Edge $ 46,800 31,200 79,400 $ 157,400 15,600 $ 10.09 $ 34,800 11,600 41,400 $ 87,800 Total $ 81,600 42,800 120,800 $ 245,200 Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit 11,600 $ 7.57 Northwest's controller wants to apply activity-based costing to allocate the $120,800 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected.
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
Problem 18.3TIF: Communication The controller of New Wave Sounds Inc. prepared the following product profitability...
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