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Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial 45,000 Annual production in units 90,000 $360,000 $180,000 9,000 60,000 $180,000 $ 90,000 4,500 30,000 Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total $360,000 108,000 117,000 Machining costs Setup costs Inspection costs

Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial 45,000 Annual production in units 90,000 $360,000 $180,000 9,000 60,000 $180,000 $ 90,000 4,500 30,000 Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total $360,000 108,000 117,000 Machining costs Setup costs Inspection costs

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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How might Sander’s managers use the new cost information from its activity-based costing system to better manage its business?

Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial 45,000 Annual production in units 90,000 $360,000 $180,000 9,000 60,000 $180,000 $ 90,000 4,500 30,000 Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total $360,000 108,000 117,000 Machining costs Setup costs Inspection costs
Transcribed Image Text:Sander Company produces mathematical and financial calculators and op- erates at capacity. Data related to the two products are presented here: Mathematical Financial 45,000 Annual production in units 90,000 $360,000 $180,000 9,000 60,000 $180,000 $ 90,000 4,500 30,000 Direct material costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 45 45 1,200 600 Total manufacturing overhead costs are as follows: Total $360,000 108,000 117,000 Machining costs Setup costs Inspection costs
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