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bernie2981 bernie2981
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8 years ago
Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

Activity   Est. Indirect Activity
Costs   Allocation base   Cost allocation rate
Materials   $60,000   Material moves   $5.00/move
Assembling   $175,000   Direct labor hours   $5.00/dir. labor hour
Packaging   $70,000   # of finished units   $2.50/finished unit

The following units were produced in December with the following information:

Part #   # Produced   Materials Costs   # Moves   Dir. Labor Hours.
Part 001   1,250    $2,500   100   200
Part 002   3,500    $6,000   500   300
Part 003   3,750    $7,000   2,500   1,250

Total packaging fees for all three parts is:
A) $7,750.
B) $11,875.
C) $42,500.
D) $21,250.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
Answers my question perfectly.
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