Question
Oxnard Company uses a volume-based costing system that applies overhead cost based on machine hours at...
Oxnard Company uses a volume-based costing system that applies overhead cost based on machine hours at $25 per machine hour.
The company is considering adopting an activity-based costing system with the following data:
| Activity | Cost Driver | Rate |
| Materials handling | Pounds of material | $1.50 |
| Lathe work | Number of parts | $1.00 |
| Milling | Number of machine hours | $8.00 |
| Grinding | Number of turns | $0.40 |
| Testing | Number of units tested | $15.00 |
The two jobs processed in the month of May had the following characteristics:
| Job A | Job B | |
| Direct material | $18,400 | $60,600 |
| Direct labor | $6,000 | $12,000 |
| Pounds of material | 900 |
3,000 |
| Number of parts | 450 |
1,500 |
| Number of turns | 10,000 | 40,000 |
| Number of machine hours | 375 | 800 |
| Number of units in each job | 80 | 200 |
All units tested.
Q. Using ABC, the cost per unit for Job B is:
Group of answer choices
$157.00
$303.00
$363.00
$520.00
Homework Answers
Answer #1
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Oxnard Company uses a volume-based costing system that applies overhead cost based on machine hours at...
Oxnard Company uses a volume-based costing system that applies
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