XYZ Co. manufactures three types of remote-control devices: X, Y, and Z.T costing, has identified five activities (and related cost drivers). Each activity is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3.880,000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 3 Labor hours per unit 2 What is pool rate for the automated machinery activity?
XYZ Co. manufactures three types of remote-control devices: X, Y, and Z.T costing, has identified five activities (and related cost drivers). Each activity is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3.880,000 The following information pertains to the three product lines for next year: Y Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 3 Labor hours per unit 2 What is pool rate for the automated machinery activity?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1CMA: Pelder Products Company manufactures two types of engineering diagnostic equipment used in...
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