(needed within 1 hour, ) Upriver Parts manufactures two products, V-1 and V-2,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
(needed within 1 hour, )
Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow.
V-1 V-2
Units produced10,0001,000
Direct materials cost per unit$2$4
Machine hours per unit12
Production runs per month8040
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow.
Machine depreciation$96,000
Setup labor42,000
Material handling19,200
Total$157,200
a.Compute the unit costs for the two products V-1 and V-2 using the current costing system at Upriver (using machine hours as the allocation basis(Do not round intermediate calculations. Round your answers to 2 decimal places.)
b.Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver.(Do not round intermediate calculations. Round your answers to 2 decimal places.)
a) using current costing system v-1) V-2)
b) using proposed ABC system v-1) v-2)
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!
