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Beartowne Enterprises uses an activity-based costing system to assign costs in its auto - parts division Est
Beartowne Enterprises uses an activity-based costing system to assign costs in its auto - parts division Est. Indirect Activity Activity Costs Allocation base Cost allocation rate Materials $59,000 Material moves $4/move Assembling $155.000 Machine hours $7/machine hour Packaging $70,000 # of finished units $1.50/finished unit O A. $16,350 OB. $11,100 O $10,350 OD. $5,100
The following units were produced in December with the following information. The company incurs no direct labor costs. Part # # Produced Materials Costs # Moves Machine Hrs. Part 001 1.250 $4,500 500 600 Part 002 3,500 $6,000 400 500 Part 003 4.250 $10,000 2,800 1.150 Total manufacturing costs for Part 002 is O A. $16,350 OB. $11,100 OC. $10,350 OD. $5,100
Expert Solution
Part 002
Material costs = 6,000
Material Movement = 1,600 ( 4 x 400 )
Assembling = 3,500 ( 7 x 500 )
Packaging = 5,250 ( 1.5 x 3,500 )
Total manufacturing cost = $ 16,350
Correct answer is option A.
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