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

saliriagwu

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on: Mar 6, 2021
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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by saliriagwu on Mar 6, 2021

Bison

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Reply #1 on: Mar 6, 2021
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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saliriagwu

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

bimper21

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Reply 3 on: Yesterday
Excellent

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