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BBUS 2541
Tony Bell

544 30 MINUTES1Predetermined overhead ratebudgeted overheadbudgeted directlabour hours 710000200003550 per direct labour hour20000 budgeted directlabour hours2500 units of Medform3 hrsunit3125 units of Procel4 hrsunitMedformProcelDirect material30004500Direct labour3 hours x 1545004 hours x 156000Manufacturing overhead3 hours x 3550106504 hours x 355014200Total cost18150247002Activitybased overhead application ratesActivity Cost Application ActivityCostDriverRateOrder 120000600 orders 200 per OPprocessingprocessed OPMachine 50000050000 machine10 per MH processinghrs MHProduct9000015000 inspection6 per IHinspection hrs IH2010 McGrawHill RyersonManagerial Accounting 1e51544 CONTINUEDOrder processing machine processing and product inspection costs of a Medform unit and a Procel unitActivityMedformProcelOrder processing350 OP x 20070000250 OP x 20050000Machine processing23000 MH x 1023000027000 MH x 10270000Product inspection4000 IH x 62400011000 IH x 666000Total 324000386000Production volume units25003125Cost per unit12960123523240002500 units12960 3860003125 units12352The manufactured cost of a Medform unit is 20460 and the manufactured cost of a Procel unit is 22852MedformProcelDirect material30004500Direct labour3 hours x 1545004 hours x 156000Order processing machine processing and product inspection1296012352Total cost2046022852McGrawHillRyerson 2010 The McGrawHill Companies Inc52Solutions Manual
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