Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries), medium (for cockatiels and small parrots), and large (for cockatoos and other large parrots). The company has recently implemented an activity-based costing system. Bird's Eye View has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.

The following information relates to each size of bird cage and next year's anticipated manufacturing operations:

-Refer to Exhibit 17-3. What is Bird's Eye View cost per cost driver for parts insertion for next year (rounded)?

Question

Bird's Eye View manufactures three different sizes of bird cages: small (for finches and canaries) , medium (for cockatiels and small parrots) , and large (for cockatoos and other large parrots) . The company has recently implemented an activity-based costing system. Bird's Eye View has identified five different production activities as well as the best cost driver for each activity. Each activity and driver is listed below, along with the budgeted amount that is associated with each activity for next year.

The following information relates to each size of bird cage and next year's anticipated manufacturing operations:

-Refer to Exhibit 17-3. What is Bird's Eye View cost per cost driver for parts insertion for next year (rounded) ?

The following information relates to each size of bird cage and next year's anticipated manufacturing operations:

-Refer to Exhibit 17-3. What is Bird's Eye View cost per cost driver for parts insertion for next year (rounded)?

Quizplus · Accepted Answer

The cost driver for parts insertion is machine hours, with a total cost of $126,000 and a total of 160,000 machine hours. Therefore, the cost per cost driver for parts insertion is $0.79 per machine hour.

Bird's Eye View Manufactures Three Different Sizes of Bird Cages