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Author Question: Austin Company manufactures 2 products, Flacca and Gordo. Overhead costs are comprised of machine ... (Read 65 times)

Ale

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Austin Company manufactures 2 products, Flacca and Gordo. Overhead costs are comprised of machine set-ups $1,600,000; machining $3,600,000; and inspecting $1,200,000. Recent data are shown below:

FlaccaGordo
Direct labor hours15,00025,000
Machine setups600400
Machine hours24,00026,000
Inspections800700

Overhead assigned to Gordo using a single overhead rate based on direct labor hours and using ABC, respectively, will be
◦ $2,400,000 and $3,328,000.
◦ $4,000,000 and $3,072,000.
◦ $2,400,000 and $3,072,000.
◦ $4,000,000 and $2,400,000.


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Marked as best answer by Ale on Feb 5, 2023

athenaheim

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Ale

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


juliaf

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Reply 3 on: Yesterday
Excellent

 

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