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Mia Company uses activity-based costing and reports the following for this year. Activity Cutting Budgeted Cost $ 28,000 Activity Cost Driver Machine hours (MH) Direct labor hours (DLH) Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Complete this question by entering your answers in the tabs below. Required Required B A

Mia Company uses activity-based costing and reports the following for this year. Activity Cutting Budgeted Cost $ 28,000 Activity Cost Driver Machine hours (MH) Direct labor hours (DLH) Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Complete this question by entering your answers in the tabs below. Required Required B A

Cornerstones of Cost Management (Cornerstones Series)
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 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...
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Mia Company uses activity-based costing and reports the following for this year. Activity Cost Driver Machine hours (MH) Direct labor hours (DLH) Activity Cutting Budgeted Cost $ 28,000 Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Complete this question by entering your answers in the tabs below. Required Required А В Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Activity Activity Usage Activity Rate Allocated Cost machine 30 hours Cutting Assembly direct labor 25 hours Total < Required A Required B >
Transcribed Image Text:Mia Company uses activity-based costing and reports the following for this year. Activity Cost Driver Machine hours (MH) Direct labor hours (DLH) Activity Cutting Budgeted Cost $ 28,000 Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Complete this question by entering your answers in the tabs below. Required Required А В Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Activity Activity Usage Activity Rate Allocated Cost machine 30 hours Cutting Assembly direct labor 25 hours Total < Required A Required B >
Mia Company uses activity-based costing and reports the following for this year. Budgeted Cost $ 28,000 Activity Cost Driver Machine hours (MH) Direct labor hours (DLH) Activity Cutting Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Complete this question by entering your answers in the tabs below. Required Required А В Compute an activity rate for each activity using activity-based costing. Budgeted Cost Activity Rate Activity Budgeted Activity Usage Cutting Assembly < Required A Required B >
Transcribed Image Text:Mia Company uses activity-based costing and reports the following for this year. Budgeted Cost $ 28,000 Activity Cost Driver Machine hours (MH) Direct labor hours (DLH) Activity Cutting Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours. Complete this question by entering your answers in the tabs below. Required Required А В Compute an activity rate for each activity using activity-based costing. Budgeted Cost Activity Rate Activity Budgeted Activity Usage Cutting Assembly < Required A Required B >
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Activity based costing is one of the type of costing system, under which all indirect costs and overhead costs are allocated on the basis of activities and their related cost drivers.

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