Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to...
Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to the two products is as follows:
|
001 |
002 |
|
|
Units produced |
19,000 |
25,000 |
|
Machine-hours |
7,500 |
8,500 |
|
Direct labor-hours |
8,000 |
12,000 |
|
Materials handling (number of moves) |
4,000 |
6,000 |
|
Setups |
5,000 |
7,000 |
The following costs for the year are reported:
Materials handling $160,000
Labor-related overhead 480,000
Setups 300,000
Based on the above information, Material Handling costs assigned to Product 001 for the year are:
Group of answer choices
$96,000
$64,000
$80,000
$160,000
None of these numbers is correct.
Homework Answers
Answer: $64,000
Material handling cost to Product 001 =(Total Material handling cost / Total moves )* Moves of Product 001
material handling cost = (160,000/10,000) *4000 = $64,000 (Answer)
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Joshua, Inc. uses activity-based costing. The
company produces two products, 001 and 002.
Information relating to...
Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to...
Joshua, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to the two products is as follows: 001 002 Units produced 19,000 25,000 Machine-hours 7,500 8,500 Direct labor-hours 8,000 12,000 Materials handling (number of moves) 4,000 6,000 Setups 5,000 7,000 The following costs are reported: Materials handling $160,000 Labor-related overhead 480,000 Setups 300,000 Setup costs assigned to 002 are:
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