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28 Sep 2019
Thornton Company has determined its activity cost pools and cost drivers to be the following:
Cost pools Setup $ 45,000 Material handling 9,600 Machine operation 180,000 Packing 54,000 Total indirect manufacturing costs $ 288,600 Cost drivers Setups 500 Material moves 600 Machine hours 18,000 Packing orders 1,200
One product made by Thornton, metal casements, used the following activities during the period to produce 500 units:
Setups 40 Material moves 100 Machine hours 2,100 Packing orders 180
(a) Calculate the cost per unit of activity for each activity cost pool for Thornton company.
Setup $Answer Material handling $Answer Machine operation $Answer Packing $Answer
(b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent.
$Answer
Thornton Company has determined its activity cost pools and cost drivers to be the following:
Cost pools | |
Setup | $ 45,000 |
Material handling | 9,600 |
Machine operation | 180,000 |
Packing | 54,000 |
Total indirect manufacturing costs | $ 288,600 |
Cost drivers | |
Setups | 500 |
Material moves | 600 |
Machine hours | 18,000 |
Packing orders | 1,200 |
One product made by Thornton, metal casements, used the following activities during the period to produce 500 units:
Setups | 40 |
Material moves | 100 |
Machine hours | 2,100 |
Packing orders | 180 |
(a) Calculate the cost per unit of activity for each activity cost pool for Thornton company.
Setup | $Answer |
Material handling | $Answer |
Machine operation | $Answer |
Packing | $Answer |
(b) Calculate the manufacturing overhead cost per metal casement manufactured during the period. Round your answer to the nearest cent.
$Answer
Jean KeelingLv2
30 Sep 2019