Valpar Company produces several lines of laundry hampers. The factory is highly automated and uses...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Valpar Company produces several lines of laundry hampers. The factory is highly automated and uses an activity-based costing system to allocate overhead costs to its various products. During the upcoming period the company expects to produce 72,000 units. The costs and cost drivers associated with four activity cost pools are given below:
ACTIVITIES:
UNIT LEVEL
BATCH LEVEL
PRODUCT LEVEL
FACILITY LEVEL
cost
$
30,000
$
8,000
$
15,000
$
36,000
Cost driver
12,000
labor hrs
200
setups
% of use
72,000
units
Production of 20,000 units of its popular foldable hamper required 3,000 labor hours, 75 setups, and consumed one-third of the product sustaining activities. What amount of unit-level costs will be allocated to the product?
Multiple Choice
$5,000
$2,500
$7,500
$6,000
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!
