P13-16 Activity-based costing versus traditional overhead allocation methods [LO
ID: 2348133 • Letter: P
Question
P13-16 Activity-based costing versus traditional overhead allocation methods [LO 9]
Galvaset Indutries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $20 per hour and that there were no beginning inventories. The following information was available for 2010, based on an expected production level of 50,000 units for the year, which will require 200,000 direct labor hours:
The following production, costs, and activities occurred during the month of March:
Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of March (using the activity-based costing approach). (Round "cost per unit produced" to 2 decimal places and the rest to the nearest dollar amount. Omit the "$" sign in your response.)
Galvaset Indutries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $20 per hour and that there were no beginning inventories. The following information was available for 2010, based on an expected production level of 50,000 units for the year, which will require 200,000 direct labor hours:
Explanation / Answer
Material Cost 142000 (given) Direct Labour 343600 (17180*20) Material Handling 20900 (83600*.25) Cutting 150480 (83600*1.50) Assembly 429500 (17180*25) Total Cost 1086480 Cost p.u. 285.9157895 (1086480/3800)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.