Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for
the two products follow.
V-1V-2Units produced 10,000 1,000 Direct materials cost per unit$2 $4 Machine hours per unit 1 2 Production runs per month 80 40
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow.
Machine depreciation$96,000 Setup labor 42,000 Material handling 19,200 Total$157,200
a. Upriver currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the month? (Round your answer to 2 decimal places.)
b. Upriver is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machine depreciation, production runs for setup labor, and direct material dollars for material handling. Compute the cost driver rates for the proposed system at Upriver. (Round “Machine depreciation” answer to 2 decimal places.)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more