Answer the following questions using the information below: Mayan Potters manufactures two sizes of ceramic...

50.1K

Verified Solution

Question

Accounting

image
Answer the following questions using the information below: Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost Pool Overhead Costs Activity-cost driver Materials handling $45.000 90,000 orders Machine maintenance $300,000 15.000 maintenance hours Setups $270,000 45,000 setups Inspections S105.000 21.000 inspections Total support costs 5720.000 Production Estimates Production units: Regular 8,000,000 units Jumbo 16,000,000 units Machine-hours = 200,000 mh Labor-hours - 400,000 din Mayan Potters uses an ABC system and assigns overhead costs based on the overhead activity information provided above 2) The activity-cost driver for the materials handling activity is A) Orders B) Maintenance hours Production units D) Setups 3) The materials handling activity-cost driver rate is A) S 50 B) 52.00 C) 55.00 D) $20,00 4) The inspections activity-cost driver rate is A) S 50 B) 52.00 C) $5.00 D) $20.00 5) During October, Mayan produced 700,000 regular ceramic paperweights and Mayan's production manager counted 2,000 orders: 1,000 maintenance-hours: 2,000 setups and 2.000 inspections for the regular product line. For October, Mayan's controller assigned indirect costs to the regular product line A) $25,000 B) 534.000 C) $43.000 D) 720,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students