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Author Question: Step-Up Corporation manufactures two small step ladders, Regular and Deluxe. Deluxe ladders were ... (Read 99 times)

lindiwe

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on: Jan 4, 2020
Step-Up Corporation manufactures two small step ladders, Regular and Deluxe. Deluxe ladders were added as a product line three years ago. Deluxe ladders are the more complex of the two products as they are extendable, requiring one hour of direct labour time per unit to manufacture, compared to one-half hours of direct labour time for Regular ladder.

Indirect costs are currently allocated to the products on the basis of direct labour hours. The company estimated it would incur $332,500 in manufacturing overhead costs and produce 6,000 units of Deluxe ladders and 20,000 units of Regular ladders during the current year.

Unit costs for materials and direct labour are:

Regular Deluxe
Direct labour$   9$ 18
Direct materials$ 12$ 16

Indirect costs are:
EstimatedEstimatedEstimatedTotal
IndirectActivityActivity
CostsRegularDeluxe
Activity cost pools/drivers:​​​​
Machine setups $    153,000 7001,0001,700
Purchase orders         27,500 300200500
Machine hours       128,000 5,00011,00016,000
Maintenance requests         24,000 20030050
Total $    332,500 ​​
Required:
a.Determine the unit cost of the two products using traditional costing with units as the allocation
base.
b.Determine the unit cost of the two products using activity-based costing.
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by lindiwe on Jan 4, 2020

dlook33

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lindiwe

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Reply 2 on: Jan 4, 2020
Thanks for the timely response, appreciate it

nanny

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Reply 3 on: Yesterday
Excellent

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