Simmons, Incorporated's traditional costing system uses a plantwide predetermined overhead rate based on direct labor-hours (DLHS) The company's estimated total manufacturing overhead is $1,632,986 and estimated total direct labor-hours for the year is 30,220. Data about its only two products, A and B, as well as data pertaining to its proposed activity-based absorption costing system appears below. Product B $ 63.30 $ 27.00 Product A Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) $ 31.80 $ 10.00 0.20 1.00 45,600 21,100 Estimated Activities and Activity Measures Supporting direct labor (DLHS) Setting up machines (setups) Parts administration (part types) Overhead Cost $ 695,060 551,702 386,224 Total $ 1,632,986 Expected Activity Product A Product B Total DLHS 9,120 21,100 30,220
Simmons, Incorporated's traditional costing system uses a plantwide predetermined overhead rate based on direct labor-hours (DLHS) The company's estimated total manufacturing overhead is $1,632,986 and estimated total direct labor-hours for the year is 30,220. Data about its only two products, A and B, as well as data pertaining to its proposed activity-based absorption costing system appears below. Product B $ 63.30 $ 27.00 Product A Direct materials per unit Direct labor per unit Direct labor-hours per unit Annual production (units) $ 31.80 $ 10.00 0.20 1.00 45,600 21,100 Estimated Activities and Activity Measures Supporting direct labor (DLHS) Setting up machines (setups) Parts administration (part types) Overhead Cost $ 695,060 551,702 386,224 Total $ 1,632,986 Expected Activity Product A Product B Total DLHS 9,120 21,100 30,220
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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