Question

Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct materials and...

Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct materials and $9 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 250 chainsaws, using 1,125 machine hours in 50 batches. What is the total manufacturing cost for one chainsaw? (Do not round intermediate calculations.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1
Activity Activity used Activity rate Activity cost
Machining 1,125 machine hours $4 per machine hour 1,125 x 4 = $4,500
Finishing 50 batches $20 per batch 50 x 20 = $1,000
Total $5,500

Total overhead costs = $5,500

Number of chainsaws produced = 250

Overhead per chainsaw = Total overhead costs/Number of chainsaws produced

= 5,500/250

= $22

Total manufacturing cost for one chainsaw =  Direct materials per chainsaw+ Direct labor per chainsaw+ Overhead per chainsaw

= 14 + 9 + 22

= $45

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubt. Thanks.

Add a comment
Know the answer?
Add Answer to:
Sherman, Inc. manufactures chainsaws that sell for $66. Each chainsaw uses $14 in direct materials and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Sherman, Inc. manufactures chainsaws that sell for $70. Each chainsaw uses $12 in direct materials and...

    Sherman, Inc. manufactures chainsaws that sell for $70. Each chainsaw uses $12 in direct materials and $7 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $5 per machine hour, and Finishing, which is applied at the rate of $23 per batch. This month, Sherman made 250 chainsaws, using 1.250 machine hours in 50 batches. What is the gross profit for one chainsaw? (Do not round intermediate calculations.) Multiple Choice $2140 $48.60...

  • Sherman, Inc. manufactures chainsaws that sell for $78. Each chainsaw uses $18 in direct materials and...

    Sherman, Inc. manufactures chainsaws that sell for $78. Each chainsaw uses $18 in direct materials and $7 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $5 per machine hour, and Finishing, which is applied at the rate of $27 per batch. This month, Sherman made 220 chainsaws, using 1.466 machine hours in 30 batches. What is the total manufacturing cost for one chainsaw? (Do not round Intermediate calculations.) Multiple Choice 0...

  • Pima, Inc. manufactures calculators that sell for $49 each. Each calculator uses $18 in direct materials...

    Pima, Inc. manufactures calculators that sell for $49 each. Each calculator uses $18 in direct materials and $8 in direct labor per unit. Pima has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Pima made 430 calculators, using 1,075 machine hours in 43 batches. What is the gross profit for one calculator?

  • helpp!! Lynwood, Inc. produces two different products (Product A and Product X) using two different activities:...

    helpp!! Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as a activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and th- activity rate for inspection is $580 per batch. The activity drivers are used as follows: Machine hours Number of batches Product A Product X 1,200 3,200 55 18 Total 4,400 73 What...

  • o different activities: Machining, which uses machine hours as Washington, Inc. produces two different products (Product...

    o different activities: Machining, which uses machine hours as Washington, Inc. produces two different products (Product Cand Product 2) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $682,000, while the cost of Inspection is $42,265. The activity drivers are used as follows: Machine hours Number of batches Product C 1,300 55 Product 2 3,100 24 Total 4,400 79 What...

  • Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining,...

    Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $220 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Product A Product X 1,400 3,500 53 16 Total 4,900 Machine hours Number of batches What is the...

  • Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining,...

    Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $140 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Machine hours Number of batches Product A Product X 1,100 3,500 5321 Total 4,600 74 What is the...

  • Lynwood, Inc. produces two different products (Product A and Product X) using two different activities Machining,...

    Lynwood, Inc. produces two different products (Product A and Product X) using two different activities Machining, which uses machine hours as an activity driver and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $10 per machine hour, and the activity rate for inspection is $500 per batch. The activity drivers are used as follows: Total Machine hours Number of batches Product Product X 1,100 3,500 53 21 74 What is the amount...

  • Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining,...

    Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $540 per batch. The activity drivers are used as follows: Machine hours Number of batches Product A Product X 1,400 3,100 47 18 Total 4,500 65 What is...

  • Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining,...

    Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $150 per machine hour, and the activity rate for Inspection is $580 per batch. The activity drivers are used as follows: Machine hours Number of batches Product a Product x 1,600 3,000 52 19 Total 4,600 71 What is...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT