The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: Fabrication $246,000 Assembly $144,000 Setup $110,000 Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20
The total factory overhead for Magnum Corporation is budgeted for the year at $500,000. This is divided into three activity pools: Fabrication $246,000 Assembly $144,000 Setup $110,000 Magnum manufactures two types of kayaks: Basic and Deluxe. The activity-based usage quantity for each project by activity is as follows: Fabrication Assembly Setup Basic Deluxe 2,000 dlh 8,000 dlh 5 setups 10,000 dlh 24,000 dlh 15 setups Total activity-base usage 12,000 dlh 32,000 dlh 20 setups Each product is budgeted for 2,500 units of production for the year. What is the activity-based factory overhead per unit for the Deluxe kayak? a. $154.54 b. $100.00 c. $41.80 d. $158.20
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3BE: Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company...
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