The (M) signifies a manufactured part. The (P) signifies a purchased part. The cost of...
50.1K
Verified Solution
Link Copied!
Question
Accounting
The (M) signifies a manufactured part. The (P) signifies a purchased part. The cost of level 9 parts are assembled to make level 8 cost. The level 8 costs are combined to make level 7. Levels 7 and 8 are manufactured parts. This is referred to as rolling the cost. You always start at the bottom and develop your cost to level 0. Once you reach level 0 costing for this product is complete.
Widget-Product Structure
Level Source Quantity Part Number Material Labor Overhead Total
0 M 1 01
1 M 1 A1
2 P 1 A2
2 P 1 A3
1 M 1 B1
2 P 1 B2
2 P 2 B3
1 M 1 C1
2 P 1 C2
2 P 2 C3
Part Number Unit Cost
A2 .35
A3 .40
B2 .20
B3 .30
C2 .15
C3 .25
Labor rate per hour is $15.00.
Assembly time from industrial engineering is .012 hours per assembly.
Factory overhead rate is 150% of labor cost.
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!
