4. (20 pts) A company makes two cell phones, the SLIM and the RAZ. Assume that t

Question

4. (20 pts) A company makes two cell phones, the SLIM and the RAZ. Assume that there are three activities that determine indirect costs and have the following cost drivers: Activity Materials handling Engineering Power Cost Driver Direct-material cost Engineering change notices Kilowatt-hours The cost driver activity for a recent month is as follows SLIM TRAZ Direct material cost Kilowatt-hours $25,000 $50,00 50,000 150,000 Engineering change notices Indirect production costs for the month were: Materials handling $9,000 14,000 Engineering Power TOTAL 16.000 $39,000 Compute the indirect production cost allocated to each product with the ABC system

Explanation / Answer

Activity Amt Activity Qty Per Basis SLIM Qty Overhead Assigned Material Handling 9000 75000 0.12                   25,000.00                        3,000.00 Engineering 14000 7 2000                             2.00                        4,000.00 Power 16000 200000 0.08                   50,000.00                        4,000.00 39000                      11,000.00 Activity Amt Activity Qty Per Basis RAZ Qty Overhead Assigned Material Handling 9000 75000 0.12                   50,000.00                        6,000.00 Engineering 14000 7 2000                             5.00                      10,000.00 Power 16000 200000 0.08                150,000.00                      12,000.00 39000                      28,000.00

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.