Jin Manufacturing prices its products at full cost plus 30 percent.The company operates two support departments and two producing departments.Budgeted costs and normal activity levels are as follows:
Support Department A's costs are allocated based on square feet, and Support Department B's costs are allocated based on number of employees.
Department C uses direct labor hours to assign overhead costs to products, while Department D uses machine hours.
One of the products the company produces requires 4 direct labor hours per unit in Department C and no time in Department D. Direct materials for the product cost $180 per unit, and direct labor is $80 per unit.
If the direct method of allocation is used and the company follows its usual pricing policy, the selling price of the product would be
A) $332.00.
B) $431.60.
C) $260.00.
D) $468.00
Correct Answer:
Verified
Q18: The cost of crude oil used in
Q96: Newton Company has two support departments, Maintenance
Q97: The split-off point can best be defined
Q98: Joint costs are
A) separable.
B) allocated on the
Q99: Morris Manufacturing Company has two support departments,
Q101: Figure 7-7 Eden Company manufactures two products,
Q103: Deli Products produces two products, X and
Q104: Bond Corporation, which manufactures products W, X,
Q105: Bond Corporation, which manufactures products W, X,
Q121: Which joint cost allocation method is described
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents