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svet-max [94.6K]
4 years ago
7

The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The depar

tment method allocated overhead costs at a rate of $60 per machine hour. The cost accountant for the Finishing Department has gathered the following data: Activity Cost Drivers Amount Material handling Tons of material handled $ 80 Machine setups Number of production runs 3,850 Utilities Machine hours 25 Quality control Number of inspections $ 400 During April, Mega purchased and used $100,000 of direct materials at $20 per ton. There were eight (8) production runs using a total of 12,000 machine hours in April. The manager of the Finishing Department needed 12 inspections. Actual overhead costs totaled $875,000 for the month. How much overhead costs were applied to the Work-in-Process Inventory during April using traditional costing?
Business
1 answer:
ZanzabumX [31]4 years ago
6 0

Answer:

overhead 720,000

Explanation:

We are asked for traditional costing:

so we need to find the rate adn the cost driver

rate $60 MO <u>per machine hour</u>

"total of <u>12,000 machine hours</u> in April"

rate x machine hours = applied overhead

60 x 12,000 = 720,000

the data related to ABC costing is not relevant to the question. we are asked for traditional costing.

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Explanation:

  • The term depletion is a concept generally we use in tax and accounting.
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7 0
3 years ago
A(n) ________ is defined as a business that is independently owned and operated and is not dominant in its field of operations.​
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3 years ago
Sandra is hired by a sparkling water manufacturer. Her primary function at the company is transforming resources into goods and
marshall27 [118]

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Learn more here: brainly.com/question/1462114.

4 0
2 years ago
To make CDs (certificates of deposit) look more attractive than they really are, some banks advertise that their rates are highe
iVinArrow [24]

Answer:

r = 9.14%

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3 0
3 years ago
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