Réquired: A. Prepare overhead analysis sheet to determine the total overhead allocated to production departments. NB: Round all figures up to the nearest whole number. B. Calculate the overhead absorption rates using an appropriate base C. Assuming PTS manufactures two products: Mang and Banny. Mang has a direct cost of $100. It's manufacturing process uses 10 hours in Mixing, 10 hours in Assembly and 2 hours in finishing department. Banny has a direct cost of $200 and each unit requires 10 hours in Mixing, 20 hours in Assembly and 20 hours in Finishing. Calculate the manufacturing costs assigned to each unit of product.
Réquired: A. Prepare overhead analysis sheet to determine the total overhead allocated to production departments. NB: Round all figures up to the nearest whole number. B. Calculate the overhead absorption rates using an appropriate base C. Assuming PTS manufactures two products: Mang and Banny. Mang has a direct cost of $100. It's manufacturing process uses 10 hours in Mixing, 10 hours in Assembly and 2 hours in finishing department. Banny has a direct cost of $200 and each unit requires 10 hours in Mixing, 20 hours in Assembly and 20 hours in Finishing. Calculate the manufacturing costs assigned to each unit of product.
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 18.15EX: Activity-based costing and product cost distortion The management of Four Finger Appliance Company...
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