Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $500,000, while the cost of Inspection is $30,000. Product 5 uses 20% of total machine hours and 75% of total batches. What is the total Machining cost assigned to Product 5?
A. $22,500
B. $100,000
C. $375,000
D. $7,500
Answer: B
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All of the following statements are true except:
a. IFRS uses net realizable value with no upper or lower limits imposed. b. Both U.S. GAAP and international financial reporting standards (IFRS) require the use of the lower-of-cost-or-market rule to value inventories. c. Write-downs of inventory can be reversed in later periods under U.S. GAAP. d. U.S. GAAP defines market value as replacement cost.
To determine whether a lottery winner would prefer to receive the money in a single lump sum immediately or receive an equal amount over a period of years, you would use which type of time value of money calculation?
a. The future value of a single amount. b. The present value of a single amount. c. The future value of an annuity. d. The present value of an annuity.
Telephone costs are an example of a mixed cost
Indicate whether the statement is true or false
Variance analysis for overhead normally focuses on
a. efficiency variances for machinery and indirect production costs. b. volume variances for fixed overhead costs. c. the controllable variance as a lump-sum amount. d. the difference between budgeted and applied variable overhead.