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Serga [27]
3 years ago
8

Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 1,

000 units, while 1 skates require 1.5 direct labor hours per unit, while skateboards require 1:25 direct labor hours per unit. The total estimated overhead for the period used an activity-based costing system, it would have the following three activity cost pools: Expected activity Estimated overhead cost $6,550 $16,000 $91450 Activity cost pool Roller skates Skateboards Total Setup costs 345 320 665 Engineering costs Maintenance costs 490 630 1,120 2,175 2,178 4,353 The overhead cost per skateboard using an activity-based costing system would be closest to (Round all answers to two decimal places.)
A. $45.14
B. $57.91
C. $114.72
D. $33.47
Business
1 answer:
Vesna [10]3 years ago
8 0

Answer:

D. $33.47

Explanation:

The computation of overhead cost per skateboard using an activity-based costing system is shown below:-

                                    Total          Expected           Activity

Activity pool cost      Overheads    Activity               Rate

Setup cost                     $6,550           665                9.85

Engineering cost          $16,000        1,120                14.29

maintenance cost        $91,450        4,353               21.01

Activity pool cost          Rate             Driver         Overhead cost  

Setup cost                       9.85              320              3,152  

Engineering cost             14.29             630             9,002.7

maintenance cost            21.01              2,178           45,759.78  

Total Overheads cost                                               57,914.48

Number of units                                                               1,730

Overhead cost per unit                                                $33.48

Therefore for computing the overhead cost per unit we simply divide the total overhead cost by number of units.

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Answer:

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3 0
3 years ago
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kondaur [170]

Answer:

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Explanation:

As the name suggest, differential cost is the difference between the costs of two alternative options. Now in this question, Patridge Co. has two products, PJ AND PD, <em>one of which (i.e PD) can be produced by further processing an already produced product (i.e PJ). But for the production of product D, Patridge Co. would have to incur additional cost of $9.25 per pound. </em>

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