ACC349TeamA.P4-3a.andP4-4A.Week3team - A) 830,000 / 100,000...

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A) 830,000 / 100,000 = $8.30 Machine hours B) Stellar Stair Company Manufacturing Costs Direct Materials 103,600 Direct Labor 112,000 Overhead (14,500 x 8.30) 120,350 Total 335,950 Cost per stair (335,950/280) $1,199.82 C) Activity Cost Pool Purchasing 57,000 600 $95.00 Handling Materials 82,000 8000 $10.25 Production 210,000 100,000 $2.10 Setting up Machine 85,000 1,250 $68.00 Inspecting 90,000 6,000 $15.00 Inventory 126,000 168,000 $0.75 Utilities 180,000 90,000 $2.00 Activity Cost Pool Cost Assigned Purchasing 60 $95 $5,700 Handling Materials 800 $10.25 $8,200 Production 5,000 $2.10 $10,500 Setting up Machine 100 $68 $6,800 Inspecting 450 $15 $6,750 Inventory 16,000 $0.75 $12,000 Utilities 8,000 $2.00 $16,000 Overhead Total 30,410 $193 65,950 Direct Materials 103,600 Direct Labor 112,000 Overhead 65,950 Total 281,550 Cost of stairs 281,550/280 = 1005.54 D) Activity-based costing would the the preferred costing system because it is more accureate and will allow for the company to assign overhead costs.
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This note was uploaded on 01/01/2012 for the course ACCOUNTING Intermedia taught by Professor Varied during the Spring '11 term at University of Science and Arts of Oklahoma.

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ACC349TeamA.P4-3a.andP4-4A.Week3team - A) 830,000 / 100,000...

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