Current Attempt in Progress Wildhorse Inc. is a manufacturer of quality shoes. The company has...
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Current Attempt in Progress Wildhorse Inc. is a manufacturer of quality shoes. The company has always used a plant-wide allocation rate for allocating manufacturing overhead to its products. The plant manager believes it is time to change to a better method of cost allocation. The accounting department has established the following relationships between production activities and manufacturing overhead costs: Activities Cost Drivers Material handling Number of parts Assembly Labour hour Inspection Time spent by item at inspection station Allocation Rate $6.00 per part 80.00 per hour 19.00 per minute The previous plant-wide allocation rate method was based on direct manufacturing labour hours, and if that method is used, the allocation rate is $800 per labour hour Question 3 of 5 2.5/5 E Indirect manufacturing cost 40 per pair e Textbook and Media Attempts: unlimited (b) What are the indirect manufacturing costs per pair of shoes to produce a batch of 1,000 pairs, assuming the activity-based method of allocation is used? (Round answer to 2 decimal places, eg. 15.25.) Indirect manufacturing cost per pair e Textbook and Media Save for Later Attempts: unlimited Submit
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