Duce, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows:
Product A Product X Total
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67
What is the amount of Machining cost assigned to Product X?
a. $780,000
b. $22,500
c. $380,000
d. $950,000
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Ответ:
Machinning= $487,500
Explanation:
Giving the following information:
The activity rate for Machining is $125 per machine hour.
Product A Product X Total
Machine hours 1,900 3,900 5,800
To assign costs to Product X, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machinning= 125*3,900
Machinning= $487,500
Ответ: