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https://opentextbc.ca/principlesofaccountingv2openstax/chapter/describe-and-identify-cost-drivers/
34 Describe and Identify Cost Drivers . As you’ve learned, the most common bases for predetermined overhead are direct labor hours, direct labor dollars, or machine hours. Each of these costs is considered a cost driver because of the causal relationship between the base and the related costs: As the cost driver’s usage increases, the cost of overhead increases as well.Author: Patty Graybeal, Mitchell Franklin, Dixon Cooper
https://www.mccc.edu/~horowitk/documents/Chapter04_002.pdf
Each product requires 1 hour of direct labor Total annual direct labor hours (DLH) 30,000 (25,000 + 5000) Direct labor cost $12 per unit for each product Expected annual manufacturing overhead costs $900,000 Direct materials cost: The Boot - $40 per unit The Club - $30 …
https://strategiccfo.com/cost-driver/
Cost Driver Rates. A cost driver rate is the amount of indirect or variable cost assigned to each unit of cost driver activity. For example, you may apply indirect overhead to direct labor hours as $50 dollars per hour. In this case, for each hour of direct labor required for production, the company would then allocate $50 of indirect overhead costs to the production activities or output. Cost Driver Examples
https://corporatefinanceinstitute.com/resources/knowledge/accounting/direct-labor/
The labor cost per unit is obtained by multiplying the direct labor hourly rate by the time required to complete one unit of a product. For example, if the hourly rate is $16.75, and it takes 0.1 hours to manufacture one unit of a product, the direct labor cost per unit equals $1.68 ($16.75 x 0.1). 4.
https://www.csus.edu/indiv/p/pforsichh/accountinginfo/121/documents/ch05inclassproblemshorngren13emycopyx2.pdf
Indirect labor and distribution costs would not be in the same activity-cost pool because their cost drivers are very dissimilar. A cost driver of indirect labor would include direct labor hours, while a cost driver of distribution costs would include cubic feet of cargo moved 17.
https://www.chegg.com/homework-help/questions-and-answers/honeydew-company-produces-two-products-high-end-laptop-computer-label-bunsen-laptops-inexp-q48185670
1. Calculate the cost per unit for making the Bunsen Laptops, using a plant-wide overhead rate based only on direct labor hours.. A.$750 per laptop. B.$963 per laptop. C.$560 per laptop. D.$2,245 per laptop. E.$2,310 per laptop. 2. Calculate the cost per unit for making each Beaker Computer, using ABC overhead rates based on both machine hours and setup hours.
https://quizlet.com/506130032/acct-final-flash-cards/
Variable Cost Per Unit $4.51 Total Fixed Cost $495 ($2750 - $900) / (500 - 90) = $4.51; $2750 - (500 x $4.51) = $495 (High: Maintenance Cost - Low: Maintenance Cost) / (High: Direct labor hours - Low: Direct labor hours) = Variable cost per unit; High: Total Cost - (Variable Cost per unit x High: direct labor hours) = Total fixed cost
https://quizlet.com/461004058/accounting-220-final-flash-cards/
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering/Recieving Orders $ 120000 500 orders Machine Setup Setups 297000 450 …
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