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The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.Activity Cost DriverActivity 1 Direct materials costActivity 2 Direct labor costActivity 3 Kilowatt hoursThree types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:
Product A Product B Product CDirect materials cost $75,000 $50,000 $125,000Direct labor cost $6,000 $1,000 $3,000Direct labor hours 1,000 500 1,500Kilowatt hours 150,000 200,000 150,000Indirect production costs for the month are as follows:Activity 1 $12,000 Activity 2 20,000 Activity 3 16,000 Total $48,000Required:A) Compute the indirect production costs allocated to each product using the ABC system.B) Compute the indirect production costs allocated to each product using a traditional costing system.Assume indirect production costs are allocated to each product using the cost driver: direct labor hours
Which of the four types of costs would include a CEO's salary? A. Unit-Level B. Batch-Level C. Product Sustaining D. Facility Sustaining
Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices-one in Houston and one in Dallas
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How do I calculate labour capacity ratio
Pauline's Pastry Shop decides to remodel its offices this year. As part of the remodeling, Pauline's trades furniture with a cost of $12,000 that had been expensed in the year of p
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Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and
The following information is available for the automotive division of Ford Motor Company for 2009. The company uses the LIFO inventory method.
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