Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. whitman enterprises uses a traditional costing sys

Whitman Enterprises uses a traditional costing system to estimate quality control costs for its Dragon...

70.2K

Verified Solution

Question

Accounting

image
Whitman Enterprises uses a traditional costing system to estimate quality control costs for its Dragon product line. Costs are estimated at 30% of direct labor cost and direct labor totaled $865,000 for the quarter just ended Management is contemplating a change to activity-based costing, and has established three cost pools Incoming material inspection, in process inspection and final product certification Number of parts, number of units, and number of orders have been selected as the respective cost drivers. The following data show the pool rates that have been calculated by the company along with the quantity of driver units for the Dragon's Pool Rate $0.50 per part 8.17 per unit 120.00 per order Driver Quantities 584,250 parts 28,500 units 95 orders Required: A. Calculate the quarterly quality control cost that is allocated to the Dragon product line under Whitman's traditional-costing system B. Calculate the quarterly quality control cost that is allocated to the Dragon product line of activity based costing is used C. Does the traditional approach under or overcost the product line? By what amount? A Quality control cost B Quality control cost c

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

XYZ Company’s machine was purchased 5 years ago for $55,000. It had an expected life of...

Finance
Q

1.         Borden Road Music is producing CDs for five (5) artists, Sarah D, Tom Boy, Uber Lyft,...

Basic Math
Q

4 Determine the slope of a line that passes through each pair of points What...

Basic Math
Q

Given the function f x 3x 10 find the net signed area between f x...

Calculus
Q

Use the slope-intercept form to graph the equation 4x - 5y = 20.

Algebra
Q

Consider the graph of f x below 9 8 9 8 7 6 4 0...

Algebra
Q

4k If e 8 what is e k

Algebra
Q

Larry, the plumber is unemployed and has no money. Jose, the roofer is unemployed and...

Accounting
Q

Use the following information to calculate cash paid for income taxes: Income Tax Expense Income...

Accounting
Q

Required information [The following information applies to the questions displayed below) Shadee Corp. expects to...

Accounting
Q

Question 1 (4 Marks) ...

Finance
Q

2. What type of risk is faced, and how does one hedge, or protect themselves...

Finance