Anda di halaman 1dari 1
‘The OBVlen Company uses machine hawt appl overhead to the Matning Deparment and dct labor huts inthe Assembly Department The following informations {Baal for he current yea. Tass [ae Biimaedavwhead | $420,000 [8,000 Esimaied actin achive bre 7a] T5000 ‘Ducet labor ows [40000 | 60.000 stad ett Machine Foor e300, a0 Duet inbor ware | 5.000) 65.200 hat the toa mount of vera asigned to he produc? ‘The main dferencebetwean an actty based costing system and a two-stage casting system isha, nthe rst stage atocatlon, an acthty-based costing system: ‘super tnustles manatees 9 tanard mde ard delee motel sated, The company, which uses 2 tadtaal costing system, apples overhead onthe bas of imachine how. The along satya at Gta we om Mer Wacker of | Nounberot under of | Hodstion | “Diactae sete | “Ruse | Hows Sita a = So. Deloss 5 4 Ta ‘Green cons_| $00,000 $5000 5-16 Cost hierarchy. Hamilton, Inc, manufactures boom boxes (music systems with radio, cassette, and compact disc players) for several woll-known companies. Tho boom boxes differ significantly in their com- ploxity and their manufacturing batch sizos. The following costs were incurred in 2011: a. Indirect manufacturing labor costs such as supervision that supports direct manufacturing labor, $1,450,000 b. Procurement costs of placing purchase orders, receiving materials, and paying suppliers related to the ‘number of purchase orders placed, $850,000 . Gost of inditect materials, $275,000 d. Costs incurredtto set up machines each time a different product needs to be manufactured, $630,000 e. Designing processes, drawing process charts, making engineering process changes for prod- ucts, $775,000 {. Machine-related overhead costs such as depreciation, maintenance, production engineering, {$1,500,000 (These resources relate to the activity of running the machines.) 4. Plant management, plant rent, and plant insurance, $825 000 1. Classify each of the preceding costs as output unit-level, batch-level, product-sustaining, or facility: sustaining. Explain each answer.