Question

Hope Inc. manufactures and sells two products. Data with regard to these products are given below. Product A Product B Units produced and sold 45,000 18,000 Machine hours required per unit 4 6 Receiving orders per product line 75 225 Production orders per product line 24 36 Production runs 16 24 Inspections 40 60 Total budgeted machine hours are 290,000. The budgeted overhead costs are shown below. Receiving costs $900,000 Engineering costs 600,000 Machine setup costs 50,000 Inspection costs 400,000 Total budgeted overhead costs $1,950,000 Using activity-based costing, the per unit overhead cost allocation of receiving costs for product A is: Select one: a. $56.26 b. $14.29 c. $5.00 d $26.00

          Hope Inc. manufactures and sells two products. Data with regard to these products are given below.
Product A Product B
Units produced and sold
45,000
18,000
Machine hours required per unit
4
6
Receiving orders per product line
75
225
Production orders per product line
24
36
Production runs
16
24
Inspections
40
60
Total budgeted machine hours are 290,000. The budgeted overhead costs are shown below.
Receiving costs
$900,000
Engineering costs
600,000
Machine setup costs
50,000
Inspection costs
400,000
Total budgeted overhead costs $1,950,000
Using activity-based costing, the per unit overhead cost allocation of receiving costs for product A is:
Select one:
a. $56.26
b. $14.29
c. $5.00
d $26.00

Hope Inc. manufactures and sells two products. Data with regard to these products are given below.
Product A Product B
Units produced and sold
45,000
18,000
Machine hours required per unit
4
6
Receiving orders per product line
75
225
Production orders per product line
24
36
Production runs
16
24
Inspections
40
60
Total budgeted machine hours are 290,000. The budgeted overhead costs are shown below.
Receiving costs
900,000
Engineering costs
600,000
Machine setup costs
50,000
Inspection costs
400,000
Total budgeted overhead costs1,950,000
Using activity-based costing, the per unit overhead cost allocation of receiving costs for product A is:
Select one:
a. 56.26
b.14.29
c. 5.00
d26.00

Added by Montserrat C.

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