Top Posters
Since Sunday
18
13
7
r
6
u
5
5
V
4
b
4
r
4
o
4
d
4
n
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
gslwong gslwong
wrote...
Go to Answer
Posts: 75
Rep: 0 0
4 months ago
A firm produces and sells two products, Standard and Deluxe. The following information relates to setup costs of $180,000 (a part of factory overhead).

​StandardDeluxe
Units produced1,6001,600
Number of setups100125
Direct labor hours per unit99
Total direct labor costs$9,000$9,000

Activity-based costing will allocate which of the following amounts of setup cost to each unit (rounded to the nearest dollar)?
StandardDeluxe


▸
$56$56


▸
5063


▸
356444


▸
126101
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 8 times
1 Reply
Replies
Answer verified by a subject expert
lyssa1605lyssa1605
wrote...
#1
Posts: 73
Rep: 0 0
4 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
5063


Units per setup for Standard: 1,600 ÷ 100 = 16; Units per setup for Deluxe: 1,600 ÷ 125 = 12.8;
$180,000 ÷ (100 + 125) = $800 per setup;
Standard setup cost per unit = $800 ÷ 16 = $50;
Deluxe setup cost per unit = $800 ÷ 12.8 = $62.50 (rounded to nearest dollar is $63.00)
1

Related Topics

gslwong Author
wrote...

4 months ago
Just got PERFECT on my quiz
jamesbove
wrote...

Yesterday
Thank you, thank you, thank you!
Fanmkreyol
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  266 People Browsing
 248 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 169
  
 190
  
 129
Your Opinion
Previous poll results: How often do you eat-out per week?