Amount of the allocation base incurred 106400 7000

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Financial and Managerial Accounting Using Excel for Success
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Chapter 27 / Exercise PE27–4A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
amount of the allocation base incurred = $106,400 ÷ 7,000 direct labor-hours = $15.20 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $15.20 per direct labor-hour × 40 direct labor-hours = $608 Overhead applied to Job T818 Milling Department $ 435 Assembly Department 608 Total $ 1,043
10) Eaglin Company's quality cost report is to be based on the following data: Disposal of defective products $ 74,000 Liability arising from defective products $ 66,000 Test and inspection of in-process goods $ 82,000 Systems development $ 11,000 Net cost of spoilage $ 75,000 Supervision of testing and inspection activities $ 93,000 Lost sales due to poor quality $ 44,000
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Financial and Managerial Accounting Using Excel for Success
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Chapter 27 / Exercise PE27–4A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Maintenance of test equipment $ 19,000 Quality data gathering, analysis, and reporting $ 51,000 What would be the total internal failure cost appearing on the quality cost report?
11) Eaglin Company's quality cost report is to be based on the following data: Disposal of defective products $ 74,000 Liability arising from defective products $ 66,000 Test and inspection of in-process goods $ 82,000 Systems development $ 11,000 Net cost of spoilage $ 75,000 Supervision of testing and inspection activities $ 93,000 Lost sales due to poor quality $ 44,000 Maintenance of test equipment $ 19,000 Quality data gathering, analysis, and reporting $ 51,000 What would be the total external failure cost appearing on the quality cost report?
12) Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device. Mark purchased a machine two years ago to make experimental boards. The machine will be used to manufacture the new board. The cost of this machine is:

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