Detroit Foundry, a large manufacturer of heavy equipment components, has determined the follow-
ing activity cost pools and cost driver levels for the year:
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Activity Cost PoolActivity CostActivity Cost Driver
Machine setup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $660,00012,000 setup hours
Material handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,0002,000 tons of materials
Machine operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,00010,000 machine hours
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The following data are for the production of single batches of two products, C23 Cams and U2
Shafts during the month of August:
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C23 CamsU2 Shafts
Units produced ...........................................500300
Machine hours............................................45
Direct labor hours .........................................200400
Direct labor cost ..........................................$5,000$10,000
Direct materials cost.......................................$30,000$20,000
Tons of materials..........................................12.58
Setup hours..............................................
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Status NEW
Posted 21 Apr 2017 12:04 AM
My Price 9.00
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