During the last 10 months, Arcade Corporation has had the following indirect costs

Business Sep 25, 2020

During the last 10 months, Arcade Corporation has had the following indirect costs. It is tryng to determine a good cost driver for the indirect costs. That usage of two potential cost drivers, direct labor hours and machine hours has been recorded over the last 10 months.

Month Indirect Costs Direct Labor Hours Machine Hours
1 $3,200,000 5,000 3,000
2 $3,600,000 5,100 4,300
3 $3,800,000 5,400 3,500
4 $3,500,000 5,200 3,300
5 $2,800,000 5,000 2,900
6 $4,000,000 5,500 4,000
7 $3,500,000 5,100 3,400
8 $3,700,000 5,400 3,800
9 $4,200,000 5,700 4,200
10 $2,500,000 4,500 2,600

Which driver is most closely associated with the indirect costs?

Expert Solution

please see the attached file.

Download Solution Attachment (PDF/Doc)

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote