Question

Chang Manufacturing Corporation has a tradicional con Fancy about which it has provided the following system in which is applies manufacturing on Direct manals per un Direct labor per un Direct labor-hours per un Annual production $ 25.20 S 570 Fancy 5000 2350 30.000 25.000 The company's estimated total manufacturing overhead for the year U7000 and ho The company is considering using a vention of activity-based costing to detene producto l s D borhouse years 100 e besede E nd Overhead Activities and Activity Measures Supporting direct IDO DLHS Setting up machines Parts administration art types Expected Activity The manufacturing overhead that would be applied to product Fancy under the activity based co 56630 53800 O 5760 $26.87 Type here to search

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

B Answer The correct answer is $26.87 Calculation and explanation Table for overheads assigned to Fancy Activities Cost No. of activities overhead rate Cost / No. of activities) Expected Activity by Fancy Overheads of fancy (overhead rate * expected activities) 450000 108675 113150 671825 Supporting Direct Labour Setting up machine Parts adminstration 18 115 365 25000 945 310 558000 31000 268870 2338 351130 962 1178000 No. of units Overhead cost per unit 25000 26.87