Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 21 Feb 2018 My Price 6.00

Northstar Inc

Northstar Inc., uses activity-based costing to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 20X6 and their allocation bases are as follows:

Northstar, Inc., expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 setups, and consume 2,000 hours of finishing time.

Required

1. Compute the cost allocation rate for each activity.

2. Compute the indirect manufacturing cost of each wheel.

Answers

Maurice Tutor
(5)
Status NEW Posted 21 Feb 2018 10:02 PM My Price 6.00

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