Homework Answers
Total overheads = $336,000
Production of M = 84,000 units
Production of XY = 56,000 units
Total units = 84,000+56,000
= 140,000
Overhead allocated rate = Total overheads / Total units
= 336,000/140,000
= $2.4 per unit
Overhead allocated to product M = Overhead allocated rate x Production of M
= 2.4 x 84,000
= $201,600
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Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using...
Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using...
Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount M XY Production setups Number of setups $ 69,000 6 14 Material handling Number of parts 52,000 60 15 Packaging costs Number of units 215,000 112,000 48,000 $ 336,000 What is the total overhead...
Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using...
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Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using...
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Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using...
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Allure company manufactures and distributes two products M and XY. Overhead cost are currently allocated using...
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RS Company manufactures and distributes two products, R and S.
Overhead costs are currently allocated using the number of units
produced as the allocation base. The controller has recommended
changing to an activity-based costing (ABC) system. She has
collected the following information:
1.What is the total overhead allocated to Product
R using the current system?
2.What is the total overhead per unit allocated to Product
R using activity-based costing (ABC)?
3.What is the total overhead allocated to Product
S using...
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