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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Franklin, Inc uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows:
X Y
Units produced 38,000 50,000
Machine hours 15,000 17,000
Direct labor hours 16,000 24,000
Materials handling (number of moves) 8,000 12,000
Setups 10,000 14,000
The following costs are reported:
Materials handling $160,000
Labor related overhead $480,000
Setups $240,000
Labor related overhead costs assigned to product X are:
A. $192,000
B. $232,000
C. $288,000
D. $272,500
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