9-34..xlsx - 9-34. Unitwide versus Department...

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9-34.Unitwide versus Department Allocation-Decision MakingRefer to exercise 9-33. Orlando, the manager of the New York unit, is unhdevelop separate rates for fixed and variable costs in the Personnel Depafollows:a. Orlando argues that New York should only be allocated the variable copay the fixed costs even if New York did not exist. Compute the cost alloc
9-37.Activity-Based versus Traditional CostingMaglie Company manufactures two video game consoles: handheld andexpensive than the home consoles. The company only recently began proproduct, profits have been steadily declining.Management believes thatproducts, particularly because sales of the new product have been increaallocation problem. You find that manufacturing overhead is currently asyour investigation, you have data from last year. Manufacturing overheadconsoles and 10,000 home consoles. Direct labor and direct materials co
HandheldHomeDirect labor1,160,400439,600Materials750,000684,000Management has determined that overhead costs are caused by three cofollows:a. How much overhead will be assigned to each product if these three cocost per unit produced for each product?b. How much overhead will be assigned to each product if direct labor counit produced for each product?
Direct labor1,160,400Materials750,000Total overhead185%$1,383,763.84Total cost3,294,164
Total unit costs

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Term
Spring
Professor
Lucía Lessan
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