appropriate cost drivers for the indirect costs
b. Select the appropriate cost drivers for the indirect costs and allocate these cost to department M and N
c. Determine the total estimated cost of the products made in Department M and N. Assume that Mogoul produced 2,000 units of product M and 4000 units of product N during the year. If Mogoul prices its products at cost plus 40 percent of cost, what price per unit must it charge for product M and for product N?
Student Name: Ana Galdamez Class: Manageial Accounting Problem 04-17A MOGOUL MANUFACTURING COMPANY a. Cost Assignment: Cost Assignment Categories Dept. M Dept. N Indirect Salary of V. P. of production division $ 200,000 Salary of supervisor Department M $ 80,000 Salary of supervisor Department N $ 60,000 Direct materials cost Department M 300,000 Direct materials cost Department N 420,000 Direct labor cost Department M 240,000 Direct labor cost Department N 680,000 Direct utilities cost Department M 120,000 Direct utilities cost Department N 24,000 General factorywide utilities 36,000 Production supplies 36,000 Fringe benefits 138,000 Depreciation 720,000 Total Costs $ 740,000 $ 1,184,000 $ 1,130,000 Correct! Correct! Correct! b. Total Estimated Cost of Products: Indirect Allocation Weight Allocated Allocated Costs Rate of Base to Dept. M to Dept. N Salary of VP Salary of VP General utilities General utilities Production supplies Production supplies Fringe benefits Fringe benefits Depreciation Depreciation Total allocated cost c. Price per Unit: Department M N Total direct cost Total indirect cost Total production costs Number of units 2,000 4,000 Cost per unit Price
Answers
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Posted 21 Dec 2017 03:12 PM
My Price 10.00
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