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    shimla.puja's Avatar
    shimla.puja Posts: 2, Reputation: 1
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    #1

    Nov 18, 2010, 08:00 PM
    Cost Accounting
    --------------------------------------------------------------------------------
    The Good Sounds Corp. is attempting to get a better estimate of the cost of their products.

    As a first step, they are attempting to allocate overhead by defining three activity cost pools and three corresponding cost drivers. They believe that the cost drivers of each of these pools correlate with the costs of that activity pool.

    The estimated overhead costs and activity levels for each activity are given as follows:
    Activity - Supervision
    Cost Driver - Direct Labor $
    Estimated OH costs - $60,000
    Estimated Activity level - $150,000

    Activity data for the two products manufactured by the company at year end are as follows:
    Direct Labor $ - (Radios) 120,000 – (CD Players) $500,000
    #Inspections – (Radios) $500 – (CD Players) $1,500
    Machine Hours – (Radios) $5,000 – (CD Players) $5,000

    The following are the direct costs associated with each product and the units manufactured:
    Direct Material - (Radios) $1,500,000 – (CD Players) $500,000
    Direct Labor – (Radios) $120,000 – (CD Players) $30,000
    Units Produced – (Radios) $20,000 – (CD Players) $10,000

    What amount of overhead will be applied to CD Players?
    What is the unit cost of a CD Player?
    What is the unit cost of a Radio?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Nov 19, 2010, 12:03 AM

    Please refer to this announcement.

    https://www.askmehelpdesk.com/financ...-b-u-font.html

    If you will attempt this and show your work, we can check it for you. If you have a specific question, we can help. We won't do the homework for you as you don't learn anything by just being given the answers. Thanks.

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