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bernie2981 bernie2981
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Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system.

Activity   Est. Indirect Activity
Costs   Allocation base   Cost allocation rate
Materials   $75,000   Material moves   $3.00/move
Assembling   $255,000   Direct labor hours   $10.00/dir. labor hour
Packaging   $90,000   # of finished units   $1.00/finished unit

The following parts were produced in October with the following information:

Part   # Produced   Materials Costs   # Moves   Dir. Labor Hrs.
A   2,250    $3,000   900   250
B   4,000    $6,500   1,700   325
C   4,750    $9,000   2,500   1,500

Total unit cost for part B is closest to (rounded to two decimal places)
A) $7.63.
B) $3.09.
C) $4.64.
D) $4.71.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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bernie2981 Author
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8 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
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