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Scorpion4ik [409]
3 years ago
13

Fine Industries uses activity-based costing to assist management in setting prices for the company's three major product lines.

The following information is available: Activity Cost Pool Estimated Overhead Expected Use of Cost Driver per Activity Cutting 900,000 25,000 labor hours Stitching 8,000,000 320,000 machine hours Inspections 2,800,000 160,000 labor hours Packing 800,000 64,000 finished goods units.
Compute the activity-based overhead rates.
Business
1 answer:
miskamm [114]3 years ago
5 0

Answer:

Cutting 36 per Labor Hour

Stitching  25 per machine hour

Inspections  17.5 per labor hour

Packing  12.5 per finished good

Explanation:

cost/ cost driver = rate

Cutting Cost 900,000 / 25,000 labor hours = 36 Rate/DLH

Stitching Cost 8,000,000 / 320,000 machine hours = 25 rate/MH

Inspections Cost 2,800,000 / 160,000 labour hours = 17.5 rate/ DLH

Packing Cost 800,000 / 64,000  finished goods = 12.5 rate/FG

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Choose all that apply. Matt expects to get his first paycheck today. What deductions may be listed on his paycheck stub?
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3 years ago
Value may be defined as the ratio of bundled benefits received to the cost incurred by the customer to receive those benefits. _
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3 years ago
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