Determine Machine Hour Cost and Overhead Cost: Three Cost Po
Not what you're looking for?
1. OTA company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
Product X: 10 Setups, 500 Machine Hours and 75 Packing Orders
Product Y: 10 Setups, 2,000 Machine Hours and 175 Packing Orders
Cost Per Pool: $9,000 Setups, $60,000 Machine Hours and $15,000 Packing Orders
If the number of machine hours is used to assign machine hour cost, determine the amount of machine hour cost to be assigned to Product X.
A) 12,000. B)60,000 C)48,000 D)16,800
2. OTA Manufacturing Company manufactures two products (X and Y). The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers:
Product X: 15 Orders, 50 Labor Transactions and 500 Labor Hours
Product Y: 10 Orders, 150 Labor Transactions and 2,000 Labor Hours
Cost Per Pool: $10,000 Orders, $8,000 Labor Transactions, and $40,000 Labor Hours
If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned from Product X.
A) 58,000 B)8,000 C) 9,600 D)32,000.
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to determine the amount of machine hour cost to be assigned to Product X.
Solution Preview
1. OTA company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
Product X: 10 Setups, 500 Machine Hours and 75 Packing Orders
Product Y: 10 Setups, 2,000 Machine Hours and 175 Packing Orders
Cost Per Pool: $9,000 Setups, $60,000 ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Learning Lean
This quiz will help you understand the basic concepts of Lean.