2071abcquizsol

2071abcquizsol - ACG 2071 Managerial Accounting...

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ACG 2071 Managerial Accounting Participation Quiz VERSION A Clinton Company produces two products, Bill and Hillary. Overhead has traditionally been allocated on the basis of direct labor hours. Clinton recently sat up 3 activity centers to implement ABC costing. Information concerning this follows: Actual Activity Estimated Activity Estimated Cost Bill Hillary Machine setups 60 setups $48,000 15 setups 48 setups Assembly 18,000 machine hrs $135,900 13,000 machine hours 6,100 machine hrs Shipping 12,000 crates $39,600 4,800 crates 7,100 crates Direct labor 4,300 hours $64,070 2.6 hours per unit 1.4 hours per unit Direct materials 6,800 pounds $24,820 3 pounds 4 pounds Estimated volume 2,000 units 1,300 units 800 units Direct labor has a budgeted cost of $15 per labor hour. Actual labor cost was $47,600 for Bills and $17,600 for Hillaries. Actual material cost was $12,800 for Bills and $11,000 for Hillaries. 1. Which items are Clinton’s cost drivers? A.
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2071abcquizsol - ACG 2071 Managerial Accounting...

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