Chapter+7+Review+Exercises

Chapter+7+Review+Exercises - ACC 2362 - Chapter 7 Review...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 2362 - Chapter 7 Review Exercises Armstrong Company produces a variety of bicycles. One of its plants produces two bicycles: a mountain model and a racing model. At the beginning of the year, the following data were prepared for this plant: Mountain Racing Units 400,000 125,000 Selling Price $1,200 $1,000 Unit Prime Cost $400 $500 In addition, the following information was provided so that overhead costs could be assigned to each product: Activity Name Activity Driver Mountain Racing Activity Cost Machining Machine hours 250,000 250,000 $10,000,000 Engineering Engineering hours 150,000 100,000 $5,500,000 Packing Packing orders 350,000 50,000 $4,000,000 Armstrong Company uses activity-based costing to calculate product costs. 1) Calculate activity rates for machining, engineering and packing. 2) Calculate the per unit product cost for mountain bikes and racing bikes. 3) Using a plant wide rate using machine hours as the driver calculate the amount of applied overhead. 4)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/13/2011 for the course ACCT 2361 taught by Professor Severance during the Spring '08 term at Texas State.

Ask a homework question - tutors are online