Managerial Accounting week 4 P17-30b - Direct materials...

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P17-30B (15–20 min) Matthew Schweizer Req. 1 Activity Allocation Base Costs Allocated to Each Unit Start station Number of raw component chasis 3 × $1.30 = $3.90 Dip insertion Number of dip insertions 27 × $0.25 = 6.75 Manual insertion Number of manual insertions 13 × $0.70 = 9.10 Wave solder Number of components soldered 3 × $1.30 = 3.90 Backload Number of backload insertions 6 × $0.40 = 2.40 Test Testing hours 0.40 × $80.00 = 32.00 Defect analysis Defect analysis hours 0.15 × $50.00 = 7.50 Total $65.55
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Unformatted text preview: Direct materials cost $82.00 Activity costs allocated 65.55 Manufacturing product cost $147.55 Req. 2 Req. 3 Direct labor is no longer a separate cost category. This reduces accounting costs because there is no elaborate tracking of labor. Managers favor this multiple-rate, activity-based costing system because it better pinpoints activities for planning and control and it provides more accurate...
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This note was uploaded on 05/06/2011 for the course ACCOUTNING 211 taught by Professor Jobs during the Spring '11 term at Pennsylvania State University, University Park.

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