AC2720_Exercise 2.2_Template - Problem 1 Part 1 overhad a...

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Problem 1 Part 1: a. Indirect manufacturing labor costs such as supervision that supports direct manufacturi $825,000 c. Cost of indirect materials, $ 160,000 d. Costs incurred to set up machines each time a different product needs to be manufactu e. Designing processes, drawing process charts, and making engineering process changes g. Plant management, plant rent, and plant insurance, $ 512,000 Part 2 Type your answer to question 2 below b. Procurement costs of placing purchase orders, receiving materials, and paying suppliers related to the number of purchase orders placed, $ 525,000 f. Machine- related overhead costs such as depreciation, maintenance, and production en (These resources relate to the activity of running the machines.) 1. Classify each of the preceding costs as output unit– level, batch- level, product-
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Part 3 Type your answer to question3 below
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Cost Hierachy Classification ing labor, ured, $ 365,000 for products, $ 287,500 s ngineering, $ 950,000 - sustaining, or facility-sustaining. Explain each answer.
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Problem 2 Part 1: Batch-level costs Service-sustaining co Part 2: Heat Testing (HT)
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  • Fall '16
  • Cost Accounting, Direct manufacturing Labor, total direct costs, manufacturing labor costs, Plantwide

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