The James Bond Company makes cars and watches. Information about the company is as follows:
cars watches
direct material $ $
labor hours
labor rate per hour $ $
number made and sold
Overhead:
rent on factory where both made $
lathe $
diagnostic machine $
inspection $
Part : determine the cost of a car and a watch if James Bond uses labor hours to allocate overehead
Part : James Bond has decided to use Activity based Costing and has determined the following:
Rent labor hours
lathe hour per watch hours per car
diagnostic machine hours per watch hours per car
inspection hour per watch hour per car
DETERMINE THE COST OF A CAR AND A WATCH USING ACTIVITY BASED COSTING