Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

GAMMA produces over a hundred different types of residential water faucets as its

Delta, Florida plant .This plant uses activity -based costing to find out product costs.

The following table summarizes the plant's overhead for the year and the cost drivers

Used for each activity center:

Summary of plant Overhead and Activity Centers

Total cost
(millions
Activity center of dollars) Cost driver Amount of cost Activity cost per unit
&nbs p; &n bsp; Driver of cost drive

Materials handling $20.8 Direct materials $130 million $ 0.16

Purchasing 13.8 part numbers 800 $17,250

Set-up labor 6.8 &n bsp;Batches 500 $13,600

Engineering 10.9 Number of products 125 $87,200

Occupancy 16.2 &nb sp;Direct labor $ 90 million $0.18

----------------
Total plant overhead $ 68.5
----------------

One faucet model GAMMA manufactures is Explorer .Its total product cost is as follows:

Direct labor ; &nb sp; $ 121,700

Direct materials & nbsp; ; 90,500

Materials handling $ 90,500 $ 0.16 14,480

Purchasing 9 17,250 &nb sp; 155,250

Setup ; 8 13,600 &n bsp; 108,800

Engineering ; 1 87,200 &nb sp; 87, 200

Occupancy $121,70 0 $0.18 &nbs p; 21,906
&nbs p; &n bsp; ---------------------

Total cost &nbs p; $599,836

Number of units manufactured &nbs p; 12,500
&nbs p; &n bsp; ---------------------

Product cost per unit &nbs p; $ 47.99

&nbs p; &n bsp; ----------------------

Required problem:

find out the product cost per unit of the Explorer faucet using absorption costing where plant

Overhead is assigned to products using direct labor dollars.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M928628

Have any Question? 


Related Questions in Business Management

Question 1nbsp refer to figure 91 about the decision-making

Question 1:  Refer to Figure 9.1 about the decision-making process. Describe how you went about making a recent major decision. What steps did you take? Did you follow the classical or behavioral decision model? Describe ...

The patient protection and affordable care act ppaca of

The Patient Protection and Affordable Care Act (PPACA) of 2010 (section titled "Subtitle D") identifies requirements relating to provider compliance with fraud, waste, and abuse laws. Identify three measures that your he ...

Backgroundthe immediacy and urgency of the pollution

Background The immediacy and urgency of the pollution problems in the 1950s and 1960s led to an air quality strategy that focused mainly on cleaning up existing problems. The remediation that was needed allowed little ti ...

Outline the development of the european monetary system why

Outline the development of the European Monetary System. Why did it develop?

Bradley architectural a primarily residential architectural

Bradley Architectural, a primarily residential architectural firm, was just notified of an urgent request for a development proposal on a property. They are almost certain that the proposal will go to a competitor, who h ...

The internet brings up new issues with jurisdiction if a

The internet brings up new issues with jurisdiction. If a company ships products to a State but does not have a physical presence in the State can they still be summoned to appear in Court in the State where the products ...

1 what are the typical functions in a crm system2 how does

1. What are the typical functions in a CRM system? 2. How does CRM fit into the RGT framework? 3. What is the difference between front-office and back-office systems?

Lan uses long distance transmission media to link computers

LAN uses long distance transmission media to link computers separated by few miles or even thousand miles?

Object-orientated analysis and designhow do object-oriented

Object-Orientated Analysis and Design: How do object-oriented analysis and design (OOAD) methodologies compare to the traditional structured analysis and design methodologies covered earlier in the book? Define UML and d ...

175 - 200 word count no plagiarismnbspmust include peer

175 - 200 word count NO PLAGIARISM ,  MUST INCLUDE PEER REVIEWED SOURCE. The organization's strategic plan calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, an ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen