Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Budgeted Cost Driver Level Cost Driver Machinery depreciation/maintenance $ 168,640 27,200 Machine hours Factory depreciation/utilities/insurance 127,840 27,200 Machine hours Product design 554,400 38,500 Hours in design Material handling 1,078,000 134,750 Pounds of raw materials In addition, Sharp Company expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements: Men’s Razors Women’s Razors Units produced and sold 20,000 26,000 Direct labor hours 30 40 Pounds of raw materials 860 750 Hours in design 20 23 Machine hours 65 50 Using activity-based costing, how much facility-level overhead is assigned to the current order for Men's Razors? Multiple Choice $310.00. $545.00. $936.00. $403.00. $708.50.
Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Budgeted Cost Driver Level Cost Driver Machinery depreciation/maintenance $ 168,640 27,200 Machine hours Factory depreciation/utilities/insurance 127,840 27,200 Machine hours Product design 554,400 38,500 Hours in design Material handling 1,078,000 134,750 Pounds of raw materials In addition, Sharp Company expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements: Men’s Razors Women’s Razors Units produced and sold 20,000 26,000 Direct labor hours 30 40 Pounds of raw materials 860 750 Hours in design 20 23 Machine hours 65 50 Using activity-based costing, how much facility-level overhead is assigned to the current order for Men's Razors? Multiple Choice $310.00. $545.00. $936.00. $403.00. $708.50.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...
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Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system:
| Budgeted Overhead Cost | Budgeted Cost Driver Level | Cost Driver | |
|---|---|---|---|
| Machinery |
$ 168,640 | 27,200 | Machine hours |
| Factory depreciation/utilities/insurance | 127,840 | 27,200 | Machine hours |
| Product design | 554,400 | 38,500 | Hours in design |
| Material handling | 1,078,000 | 134,750 | Pounds of raw materials |
In addition, Sharp Company expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements:
| Men’s Razors | Women’s Razors | |
|---|---|---|
| Units produced and sold | 20,000 | 26,000 |
| Direct labor hours | 30 | 40 |
| Pounds of raw materials | 860 | 750 |
| Hours in design | 20 | 23 |
| Machine hours | 65 | 50 |
Using activity-based costing, how much facility-level overhead is assigned to the current order for Men's Razors?
Multiple Choice
$310.00.
$545.00.
$936.00.
$403.00.
$708.50.
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