Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 30 Jul 2017 My Price 7.00

Jarme company

Jarme company makes 2 products and is implementing an activity-based cosing (ABC) system. Previously, all overhead had been applied on the basis of machine hours. The company produces 100,000 units of product D and 5,000 units of product F annually.

 

Cost Pool Driver & Level Cost in Pool Use of Driver by D Use of Driver by F

 

Equipment Setup----------500 setups----------------$1,000,000-----------------350 setups------------------150 setups

 

Materials Ordering--------10,000 orders-------------$2,000,000-----------------7,000 orders----------------3,000 orders

 

Quality Control-------------4,000 inspections--------$500,000-------------------2,000 inspections----------2,000 inspections

 

Machining-------------------50,000 machine hrs-----$5,000,000----------------40,000 machine hrs-------10,000 machine hrs

 

What is the overhead cost per unit for Product F when all overhead is applied based on machine hours?

 

a) $170

 

b) $340

 

c) $68

 

d) $200

 

What is the overhead cost per unit for Product D when all overhead is applied based on machine hours?

 

a) $170

 

b) $68

 

c) $340

d) $40

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 10:07 PM My Price 7.00

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