1. 2. 3. Rock stone LLC produces hedge trimmers and has recently adopted activit

Question

1. 2. 3. Rock stone LLC produces hedge trimmers and has recently adopted activity-based costing. Overhead information was recently gathered with respect to the operation of the stamping machine: machine setups number of setups, quality control, and number of quality control inspections. Total overhead costs for the operation of the stamping machine are $120,000 of which $90,000 is setups and $30.000 is quality control. There were 3000 quality control Inspections. There were 200 hedge trimmers produced. How much overhead for quality control is assigned Select one: o a. $1800 o b. $2000 O C. None of the above

Explanation / Answer

Question no:1 Answer is option (C ) None of the above Over head rate per quality control Inspection = Total Quality control cost /number of Quality control Inspections =$30000/3000 =$10 Number of Quality control Inspections for per hedge trimmers = 3000 /200 hedge trimmers =15 Over head assigned to one hedge trimmer =Number of Quality control inspections * over head rate per Quality control Inspection =15*$10 =$150 Question no:2 Units to be produced are part of the Answer is option (b) : " Production Budget" Total Units Produced is a Part of the production Budget.in the production budget total cost incurred for Produced Units and Number of units to be produced is shown. Question no:3 Answer is Option :(a)   Direct materials in the Manufacturing over head Budget inculde Indirect labour , Indirect labour. Direct materils is not part of the manufacturing Over head budget. Direct material is a Direct cost

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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