Here what needs to be answered eBook Calculator Activity-based costing and produ
ID: 2522888 • Letter: H
Question
Here what needs to be answeredeBook Calculator Activity-based costing and product cost distortion Instructions Activity Table- Blenders Activity Table-Toaster Ovens Instructions Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows: 1 Assembly Department 2 Test and Pack Department 3Total $252,230.00 203,370.00 $455,600.00 The direct labor information for the production of 7,550 units of each product is as follows: Department Assembly Test and Pack Check My Work All work saved.
Explanation / Answer
Working:
Toaster Oven Activity - Base Activity Activity Usage x Rate = Cost Assembly activity 2615 dlh X 56 = 146440 Test and Pack Activity 750 dlh X 42 = 31500 Setup activity 47 setups X 799 = 37553 Total Overheads 215493 Units 7550 Factory overhead cost per unit $28.54 Blender Activity - Base Activity Activity Usage x Rate = Cost Assembly activity 605 dlh X 56 = 33880 Test and Pack Activity 2380 dlh X 42 = 99960 Setup activity 133 setups X 799 = 106267 Total Overheads 240107 Units 7550 Factory overhead cost per unit $31.80