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Merrill, Inc

question 60

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Merrill, Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead costs. The plant manager believes it is time to refine the method of cost allocation and has the accounting department identify the primary production activities and their cost drivers:
Merrill, Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead costs. The plant manager believes it is time to refine the method of cost allocation and has the accounting department identify the primary production activities and their cost drivers:   The current traditional cost method allocates overhead costs based on direct labor hours using a rate of $ 400  per labor hour. -What are the manufacturing overhead costs per remote control assuming an activity-based costing method is used and a batch of 50 remote controls are produced? The batch requires 100 parts,6 direct manufacturing labor hours,and 2.5 minutes of inspection time. A) $8.00 per remote control B) $13.10 per remote control C) $48.00 per remote control D) $655.00 per remote control
The current traditional cost method allocates overhead costs based on direct labor hours using a rate of $ 400 per labor hour.
-What are the manufacturing overhead costs per remote control assuming an activity-based costing method is used and a batch of 50 remote controls are produced? The batch requires 100 parts,6 direct manufacturing labor hours,and 2.5 minutes of inspection time.

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Definitions:

Social Psychology

A branch of psychology concerned with understanding how social phenomena influence individual psychological processes.

Cultural Context

The environmental and social variables that influence the norms, behaviors, and practices of an individual or community.

Genetic Makeup

The unique combination of genes inherited from one's parents that determines various biological traits and characteristics.

Anthropologists

Scientists who study human societies, cultures, and their development.

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