This topic contains a solution. Click here to go to the answer

Author Question: Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for ... (Read 74 times)

saliriagwu

  • Hero Member
  • *****
  • Posts: 537
Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows:

ActivitiesCost driverAllocation Rate
Material handlingNumber of parts$5 per part
AssemblyLabor hours$20 per hour
InspectionTime at inspection station$10 per minute

The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour.

What are the indirect manufacturing costs per remote control assuming an activity-based-costing method is used and a batch of 10 remote controls are produced? The batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.
◦ $2.00 per remote control
◦ $63.00 per remote control
◦ $35.00 per remote control
◦ $630.00 per remote control


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by saliriagwu on Mar 6, 2021

Bison

  • Sr. Member
  • ****
  • Posts: 342
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.
Answer Preview
Only 60% of students answer this correctly




saliriagwu

  • Member
  • Posts: 537
Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Excellent

 

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

For a complete list of videos, visit our video library