nowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows: Activity Pools Cost Pool Total Cost Driver Repair and maintenance on assembly machine $ 136,800 Number of units produced Programming cost 143,200 Number of programming hours Software inspections 27,000 Number of inspections Product testing 31,000 Number of tests Total overhead cost $ 338,000 Expected activity for each product follows: Number of Units Number of Programming Hours Number of Inspections Number of Tests Decoder P 17,100 2,200 456 2,800 Decoder Q 39,900 1,800 144 2,200 Total 57,000 4,000 600 5,000 Assume that before shifting to activity-based costing, Snowden Industries allocated all overhead costs based on direct labor hours. Direct labor data pertaining to the two decoders follow: Direct Labor Hours Decoder P 7,800 Decoder Q 18,200 Total 26,000 Required Compute the amount of overhead cost allocated to each type of decoder when using direct labor hours as the allocation base. Determine the cost per unit for overhead when using direct labor hours as the allocation base and when using ABC.
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Business, 22.06.2019 19:30
Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to:
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Business, 22.06.2019 20:20
An economic theory that calls for workers to take control of factories is .
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Business, 22.06.2019 21:00
Adecision is made at the margin when each alternative considers
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nowden Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and req...
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