Lindsay Company Uses Activity-Based Costing to Figure Product Cost

question 53

Essay

Lindsay Company uses activity-based costing to figure product cost.Three activities have been determined and rate calculated.
Lindsay provided the following data from the job order cost sheet for Job #550.
$\begin{array}{ll}\text { Setting up equipment } & =\$ 500 \text { per setup } \\\text { Moving goods } & =\$ 20 \text { per move } \\\text { Machining } & =\$ 4 \text { per machine hour }\end{array}$ $$\begin{array} { l r } \text { Direct materials } & \$ 2,000 \\\text { Direct labour } & 1,800 \\\text { Setups } & 1 \\\text { Moves } & 30 \\\text { Machine hours } & 900\end{array}$$

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Definitions:

Mutual Agreement

A consent or concord of wills between two or more parties to proceed with a course of action or adhere to terms.

Core Customer Measures

Metrics or indicators that are used to gauge the satisfaction, loyalty, and engagement of a company's primary customer base.

Preferred Suppliers

Vendors or service providers selected by a company as preferred sources due to their reliability, quality, or cost advantages.

Strategic Alliances

Partnerships between two or more companies to pursue mutual goals while remaining independent organizations.