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hichkok12 [17]
2 years ago
8

Lunker Lures makes ten different models of fishing lures. All ten models are completely crafted by hand using the same basic mat

erials; however, some of the models are more detailed and/or complex than others. Based on this information, which type of overhead costing system would be the best fit for Lunker
Business
1 answer:
maria [59]2 years ago
8 0

The type of overhead costing system that would be the best fit for Lunker is: Traditional costing system using design hours as the basis for allocation.

<h3>What is the Traditional Costing System?</h3>

The traditional costing system is a method applied in accounting that aims at determining the cost of production. One driver is assigned as the basis of allocation.

In the case of Lunker Lures above, the driver that is used as the basis of allocation should be design hours.

Learn more about the Traditional Costing System here:

brainly.com/question/24516871

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Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: Alternati
Fiesta28 [93]

Answer:

$60600.

Explanation:

Differential Costs:

Materials costs = $62,000 - $27,000

                          = $35,000

Processing costs = $33,000 - $33,000

                             = $0

Equipment rental =  $28,400 - $10,800

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Occupancy costs = $27,400 - $19,400

                              = $8,000

Sum of all differential cost = $35,000 + $0 + $17,600 + $8,000

                                            = $60,600

Therefore, the differential cost of Alternative B over Alternative A, including all of the relevant costs is $60600.

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The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,400 for 1,4
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Answer:

Variable cost per unit= $0.5 per inspection

Explanation:

Giving the following information:

The costs ranged from $4,400 for 1,400 inspections to $4,200 for 1,000 inspections.

<u>To calculate the variable cost under the high-low method, we need to use the following formula:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,400 - 4,200) / (1,400 - 1,000)

Variable cost per unit= $0.5 per inspection

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