Details of this Paper

Bernie Company_Activity Based Costing

Description

solution


Question

Question;Compute the activity rate for each activity cost pool. What is the unit cost of wheels, and what is the unit cost of pedals?Bernie Company makes two products, wheels and pedals and reports the following information:Direct Labor Hours Per UnitAnnual ProductionWheels0.810,000 unitsPedals0.440,000 unitsWheels require $12 per unit in direct material, and pedals require $8 per unit in direct material. The direct labor rate for both products is $12 per hour. Wheels require special processing that pedals do not require.The activity-based costing system used by Bernie reflects the following cost pools identified by the company:Activity Cost PoolEst. Overhead CostsActivityTotalWheelsPedalsNumber of machine setups$72,000100300400Machine hours/special processing$200,0005,00005,000General overhead (direct labor hours)$816,0008,00016,00024,000Compute the activity rate for each activity cost pool. What is the unit cost of wheels, and what is the unit cost of pedals?

 

Paper#37510 | Written in 18-Jul-2015

Price : $22
SiteLock