Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor S624,000 Direct labor-hours 940,000 Machine maintenance $100,000 Machine-hours 840,000 Facility rent s216,000 Square feet of area 140,000 Total overhead costs S940,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 290 Machine-hours 1,681.68 Square feet of area 50 Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job? (Do not round any intermediary calculations.) Select one: a. $1,881.88 b. $200.20 c $1,681.68 d. $210.45

Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor S624,000 Direct labor-hours 940,000 Machine maintenance $100,000 Machine-hours 840,000 Facility rent s216,000 Square feet of area 140,000 Total overhead costs S940,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 290 Machine-hours 1,681.68 Square feet of area 50 Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job? (Do not round any intermediary calculations.) Select one: a. $1,881.88 b. $200.20 c $1,681.68 d. $210.45

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

See similar textbooks

Similar questions

Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.
The National Bank of Union City currently has one outsidedrive-up teller. It takes the teller an average of three minutes (exponentially distributed) to serve a bank customer.Customers arrive at the drive-up window at the rate of12 per hour (Poisson distributed). The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of $20,000. It isassumed that arriving cars would be equally divided between both windows. The operations officer estimates thateach minute’s reduction in customer waiting time wouldincrease the bank’s revenue by $2000 annually. Should thesecond drive-up window be installed? What other factorsshould be considered in the decision besides cost?
If engineering change order is the activity for an application of the ABC method of overhead allocation, the most reasonable cost driver(s) may be:1 – number of changes processed2 – size of the work force3 – management cost to process the change ordera. 1b. 2c. 3d. 1 and 3
Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost P8.00, annual demand of 40000, and ordering cost of P48. *
Using the Profit data create a two-way Data Table that calculates the profit using labor cost per item ranging from $5 to $7 with $0.2 increments and quantity from 1500 to 2500 units with 100-unit increments. Assumptions: Fixed cost: $ 5,000.00 Material costs per item: $ 2.25 Labor costs per item: $ 6.50 Shipping costs per 100 items: $ 200.00 Price per item: $ 12.99
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable costs (per unit) ($) Process type Annualized fixed cost labor material energy Of plant & equip. Intermittent $1,000,000 24 26 20 Mass customization $1,190,000 30 18 12 Repetitive $1,385,000 28 15 11 Continuous $1,660,000 25 15 10 Determine the most economical…
AN EXECUTIVE RECEIVES AN ANNUAL SALARY OF P600,000 AND HIS SECRETARY A SALARY OD 180,000.A CERTAIN TASK CAN BE PERFORMED BY THE EXECUTIVE WORKING ALONE IN FOUR HOURS. IF HE DLEGATES THE TASK TO HIS SECRETARY WILL REQUIRE HIM 30 MINS TO EXPLAIN THE WORK AND ANOTHER 45MINS TO CHECK THE WORK. DUE TO THE UNFAMILIARITY OF THE SECRETARY TO DO TASK, IT TAKES HER AN ADDITIONAL TIME OF 6HOURS AFTER BEING INSTRUCTED. CONSIDERING SALARY COST ONLY, DETERMINE THE COST OF PERFORMING THE TASK BY EACH METHOD, IF THE SECRETARY WORKS 2400HOURS A YEAR AND THE EXECUTIVE 3000 HOURS A YEAR. COST OF PERFORMING THE TASK: SECRETARY WORKING WITH EXECUTIVE
In a building construction project, 7,500 feet of insulated ductwork is required. The ductwork is made from 14-gauge steel costing $8.50 per pound. The 24-inch-diameter duct weighs 15 pounds per foot. Insulation for the ductwork costs $10 per foot. Engineering design will cost $16,000, and labor to install the ductwork will amount to $180,000. What is the total cost of the installed ductwork for this project?
Fast pls solve this question correctly in 5 min pls I will give u like for sure Svtik The cost of an electrode position control system in an electric arc furnace was $16,000 when the applicable equipment cost index had a value of 1,192. If the current index value is 1,364 and the exponent in the cost-capacity equation has a value of 0.65, the estimated cost now of a similar system twice as large is
BC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the oer unit total cost ?
NUBD, is beginning the production of a new product. Management believes that 500 labor hours will be required to complete the new unit. An 85 percent incremental unit-time learning curve model for direct labor hours is assumed to be valid. Assume the q = -0.2345. What is the total hours for 3 units? a. 1,251 b. 695.61 c. 786.87 d. 552.71
My aunt is thinking of opening a simple café in your neighborhood. She estimates that it would cost Php120,000 per year to rent the location, plus another Php240,000 for the ingredients and labor per year. She wants to work as the cashier in the cafe but she would have to quit her job as an accountant where she is receiving Php20,000 per month. She expects a total sale of Php1M. Which of the FF. statements is correct? A. the total explicit cost is Php360,000 per year B. the total implicit cost is Php240,000 per year C. the accounting profit is Php640,000 per year D. all are correct E. none is correct