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Category > Accounting Posted 12 Jul 2017 My Price 11.00

Activity-Based Costing CHAC Labs Inc

5-33 Activity-Based Costing CHAC Labs Inc. is a company that performs cutting-edge genetic tests and research. The management accountant has identified the following overhead cost pools and cost drivers:

 

Cost Pools

Specimen preparation/engineering

Activity Costs

$120,000

Cost Driver

Pounds of materials

Driver Consumption

2,500

Equipment calibration/setup

80,000

Setup hours

1,250

Electric power

30,000

Kilowatt-hours

30,000

 

The following cost information pertains to the production of two of CHAC’s most popular genetic tests: T249 and T256:

 

 

Number of units produced

T249

2,000

T256

900

Direct materials cost

$35,000

$40,000

Direct labor cost

$11,000

$20,000

 

 

(Continued)

 

 

 

 

 

 

 

Number of setup hours

140

300

Pounds of materials used

700

1,300

Kilowatt-hours

950

2,250

 

Required  Use activity-based costing to calculate the unit cost for each test.

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Jul 2017 08:07 AM My Price 11.00

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