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MArishka [77]
3 years ago
14

Monroe Corporation manufactures modern and antique clocks. Monroe's total overhead costs consist of assembly costs and inspectio

n costs. The following information is available: Cost Antique Modern Total Cost Assembly 3,600 mach. hours 1,200 mach. hours $168,000 Inspections 600 200 $80,000 4,500 labor hours 4,000 labor hours Monroe is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much of the assembly cost is assigned to the modern clocks
Business
1 answer:
lara31 [8.8K]3 years ago
8 0

Answer: $42,000

Explanation:

The total cost of Assembly is $168,000.

This is for the machine hours spent on both Antique and Modern clocks of:

= 3,600 + 1,200

= 4,800 hours

Modern clocks assembly costs would be:

= Modern clock machine hours / Total machine hours on assembly * Cost of assembly

= 1,200 / 4,800 * 168,000

= $42,000

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