Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. multiple versus single overhead rates, activity dr

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities,...

90.2K

Verified Solution

Question

Accounting

Multiple Versus Single Overhead Rates, Activity Drivers
Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:
Activity Expected Cost Activity Driver Activity Capacity
Setting up equipment $499,840 Number of setups 640
Ordering costs 359,100 Number of orders 18,900
Machine costs 898,800 Machine hours 42,800
Receiving 481,500 Receiving hours 10,700
Deoro produces two models of dishwashers with the following expected prime costs and activity demands:
Model A Model B
Direct materials $611,000 $791,000
Direct labor 485,000463,000
Units completed 15,2007,500
Direct labor hours 6,9002,100
Number of setups 420220
Number of orders 6,00012,900
Machine hours 24,10018,700
Receiving hours 3,7007,000
The company's normal activity is 9,000 direct labor hours.Required:
Determine the unit cost for each model using direct labor hours to apply overhead. Round intermediate calculations and final answers to nearest cent.
Determine the unit cost for each model using the four activity drivers. Round your answers to nearest cent.
Which method produces the more accurate cost assignment?
image

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

Finance
1.2K views

1. Bethesda Mining Company reports the following balance sheet information for 2015 and 2016. BETHESDA MINING COMPANY Balance...

Advance Math
1.2K views

A two-lane tunnel opening in the shape of a semi-ellipse has a height of 16 feet...

Biology
1.2K views

the path of lymph as it moves from 10 Describ the tissues back to the...

Biology
1.2K views

Select the statement s that is are related to passive transport Passive transport moves molecules...

Geometry
1.2K views

36 Given Construct Straight LDEF A right angle with vertex at E HINT Use Construction...

Calculus
1.2K views

Level curves isothermals are shown for the typical water temperature in C in Long Lake...

Calculus
1.2K views

Give the order of the differential equation below wh xy 6y y 8 Choose the...

Calculus
1.2K views

1 point a Find the general solution to y 3y 0 Give your answer as...

Accounting
1.2K views

On January 1, 2016, Crane Corporation acquired machinery at a cost of $1480000. Crane adopted...

Accounting
1.2K views

How does the capital structure choice influence the capital budgeting analysis? What role can the...

Finance
1.2K views

Knightmare, Inc., will pay a dividend of $6.05, $10.15, and $13.35 per share for each...

Accounting
1.2K views

On December 31, 2017, Berclair Inc. had 280 million shares of common stock and 3...