Determine the machining costs are driven by machine hours


Hagar Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $30 per direct labor hour. The company produces two products, Cape and Chap. Cape requires 60,000 machine hours and 20,000 direct labor hours, while Chap requires 40,000 machine hours and 30,000 direct labor hours. Using activity-based costing, machining costs assigned to each product is?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Determine the machining costs are driven by machine hours
Reference No:- TGS0556251

Expected delivery within 24 Hours