Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Line Item Description Units Setups Inspections Assembly (dlh) Hooks 4,000 1 3 1 Nooks 8,000 2 2 1 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to each unit of Hooks is a. $11 b. $50 c. $33 d. $61
Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Line Item Description Units Setups Inspections Assembly (dlh) Hooks 4,000 1 3 1 Nooks 8,000 2 2 1 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to each unit of Hooks is a. $11 b. $50 c. $33 d. $61
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...
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Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information:
| Line Item Description | Units | Setups | Inspections | Assembly (dlh) |
|---|---|---|---|---|
| Hooks | 4,000 | 1 | 3 | 1 |
| Nooks | 8,000 | 2 | 2 | 1 |
| Activity | Total Activity-Base Usage | Budgeted Activity Cost |
|---|---|---|
| Setups | 20,000 | $60,000 |
| Inspections | 24,000 | 120,000 |
| Assembly (dlh) | 28,000 | 420,000 |
The total factory overhead to be allocated to each unit of Hooks is
a. $11
b. $50
c. $33
d. $61
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