Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ice cool produces two different models of air cond

Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers...

80.2K

Verified Solution

Question

Accounting

Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow.

Process Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage
Assembly Machining $ 310,600 Machine hours (MH) 7,600
Setups 28,000 Setups 240
$ 338,600
Finishing Inspecting $ 234,000 Inspections 900
Support Purchasing $ 134,000 Purchase orders 510

Additional production information concerning its two models follows.

Units and Activities Model X Model Z
Units produced 2,200 4,400
Machine hours 2,200 5,400
Setups 80 160
Inspections 540 360
Purchase orders 340 170

Per Unit Model X Model Z
Selling price per unit $ 410 $ 390
Direct materials cost per unit 145 120
Direct labor cost per unit 140 140

1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit).

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

Q

Keeping the functions of water in living things in mind, describe both how too little or...

Biology
Q

Marshall McLuhan envisioned an “electronic Global Village” in which people would become “irrevocably involved with, and responsible...

Psychology
Q

Halley's comet orbits the Sun with a period of 75.3 yr. a) Find the semimajor axis...

Physics
Q

In sexual reproduction there are two parents and two sets of chromosomes A new organism...

Biology
Q

Last year, Garrison Manufacturing sold 500,000 units at $4 each. Both sales volume and sales...

Accounting
Q

Homework Your company makes chocolate products. You produce 2 products: chocolate powder and chocolate milk....

Accounting
Q

please follow the format. On 1 December 2013, John and Patty Driver formed a corporation...

Accounting
Q

Pregunta 24 McKinley Company posee 15.000 de las 50.000 acciones ordinarias en circulacin de...

Accounting
Q

the corporate form of business organization require submitting of ________ to the state in which...

Accounting
Q

Wyrich Corporation has two divisions: Blue Division and Gold Division. The following report is for...

Accounting
Q

A few years ago, the government of Russia issued 10% coupon bonds, paid annually. The...

Finance
Q

gnment Saved Compute the cost of not taking the following cash discounts, (Use a 360-day...

Finance