Question
In: Accounting
5) Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries),...
5) Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries), medium (for cockatiels and small parrots), and large (for cockatoos and other large parrots). The company has recently implemented an activity-based costing system. Bird's Eye View has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.
ActivityCost DriverBudgeted CostsMaterials handlingLabor hours$ 55,000Automated processingMachine hours40,000Plastic parts insertionNumber of parts6,000InspectionsLabor hours29,000PackagingOrders shipped31,000Total indirect manufacturing cost $161,000
The following information relates to each size of bird cage and next year's anticipated manufacturing operations:
Large MediumSmallUnits to be produced350400600Orders to be shipped180200250Number of parts per unit864Machine hours per unit42 1Labor hours per unit 222 Under an activity-based costing system, what is the per unit cost for manufacturing overhead of a SMALL cage (rounded)?
- $120
- $151
- $136
- $100
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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Cost Driver
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Number of parts
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Number of parts
990,000
Automated processing...
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