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NEW QUESTION: 1
If the organization uses the traditional full cost system, the cost per unit for this product for the coming year will be:
A. US $5.44
B. US $6.11
C. US $6.95
D. US $5.39
Answer: B
Explanation:
Given that manufacturing overhead is applied on the basis of machine hours, the overhead rate is US $60 per hour $1,800.000 - 30,000) or US $.96 per unit [80 machine hours per batch x $60) - 5,000 units per batch]. Accordingly, the unit full cost is US $6.11 $5.15 unit price cost + $.96). Believing that its traditional cost system may be providing misleading information. an organization is considering an activity-based costing ABC) approach. It now employs a full cost system and has been applying its manufacturing overhead on the basis of machine hours. The organization plans on using 50.000 direct labor hours and 30,000 machine hours in the coming year. The following data show the manufacturing overhead that is budgeted.
Cost, sales, and production data for one of the organization' s products for the coming year are as follows:
NEW QUESTION: 2
Scenario:
A. Option A
B. Option D
C. Option B
D. Option C
Answer: C,D
NEW QUESTION: 3
A. policy-based routing
B. Cisco Performance Routing
C. equal cost load balancing
D. unequal cost load balancing
Answer: B