Cost 4 - RS Company manufactures and distributes two...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
RS Company manufactures and distributes two products, R and S. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: Activity Cost Driver Amount Production setups Number of setups $82,000 Material handling Number of parts 48,000 Packaging costs Number of units 130,000 80,000 $260,000 What is the total overhead allocated to Product R using the current system? Answer Selected Answer: $146,400 Correct Answer: $160,000 Response Feedback: $260,000/130,000 = $2.00 per unit; $2(80,00 Question 2 0 out of 0 points What is the total overhead per unit allocated to Product R using activity- based costing (ABC)? Answer Selected Answer: $1.83 Correct Answer: $1.83 Response Feedback: ($82,000/20)8 + ($48,000/80)56 + ($130,000/130,000)80,000 = $146,400; $146,400/80,000 = $1.83 Question 3 0 out of 0 points
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Cost 4 - RS Company manufactures and distributes two...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online