OP Technologies Manufacturing manufactures small parts and uses an activity base

Question

OP Technologies Manufacturing manufactures small parts and uses an activity based costing system E (Click the icon to view the data.) The following parts were produced in October with the following information E (Click the icon to view the data.) Total manufacturing overhead costs for part A i:s O A. $5,000 O B. $7,700 O C. $7,350 O D. $10,050 Data Table Est. Indirect Activity Allocation Costs Cost allocation rate Activity base $80,000 $246,000 $70,000 Material moves Direct labor hours # of finished units $3.00/move $8.00/dir. labor hour $1.00 finished unit Materials Assembling Packaging Print Done Data Table Materials Part Produced 2,350 3,000 4,750 Costs # Moves Dir. Labor Hrs. $2,7001,000 $8,5001,900 $7,0002,500 250 225 1,500 Print Done

Explanation / Answer

Total manufacturing overhead costs for part A is Material moves (3*1000) 3,000 Assembling (8*250) 2000 Packaging (1*2,350) 2,350 total manufacturing overhead costs 7,350 option c ) $7,350 Answer

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