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Author Question: A firm produces and sells two products, Standard and Deluxe. The following information relates to ... (Read 65 times)

lauraleepop

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Question 1

Patel Catering Service uses an activity-based costing system. What is the most appropriate cost driver for the activity of preparing meals?
◦ Number of meals prepared
◦ Number of rolls used
◦ Rent on building
◦ Number of orders taken

Question 2

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


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Marked as best answer by lauraleepop on Feb 5, 2023

mamboz

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lauraleepop

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Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it


adf223

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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