50.1K

Verified Solution

Link Copied!

ABC Company has used a two-stage, reciprocal method cost allocation system for many years. In the first stage, overhead costs from its two service departments (repair and administration) are allocated to its two production departments (molding and assembly) based on the following activity levels: repair - repair hours  administration - # of employees In the second stage, departmental overhead rates for the two production departments are calculated using direct labor hours as the activity for each department. The following information is available for the four departments:  Repair Admin Directly traced overhead $165,000 $228,250 Repair hours 20,000 11,250 Number of employees 12 20  Molding Assembly Directly traced overhead $88,160 $136,340 Repair hours 2,400 1,350 Number of employees 3 5 Direct labor hours 40,000 25,000 During March of the current year, ABC Company started and completed two jobs, Job A and Job L. Information related to the two jobs is given below:  Job A Job L Prime costs $70,000 $60,000 Direct labor hours in molding 8,000 3,000 Direct labor hours in assembly 2,000 9,000 Units in the job 1,000 1,500 Units sold during March 600 ? Assume there were no beginning inventories of any type at March 1. ABC Company's finished goods inventory at March 31 totaled $149,601. Calculate the number of units from Job L that were sold during March.

Answer & Explanation Solved by verified expert

See Answer