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L Company produces two products- calculators and games. The company planned to produce 4,000 calculators and 8,000 games. The company uses ABC costing, and one of the activity cost pools was assembly, which had a cost driver of total parts. The total amount of estimated overhead for the assembly cost pool was $748,000. The calculator required 16 parts, and the games required 52 parts. What would the overhead cost per unit be as it relates to the assembly cost pool for games? A. $44.00 B. $62.33 C. $71.50 D. $82.00
The question is from the net. The answer is 71.50. Unfortunately there is no explanation.
Im not understanding how they get 71.50.
Total parts = (4000*16)+(8000*52)=480000
Costdriver=748000/480000=$1.558 per part
Then overhead cost per unit for games is 1.558*52=$81.the answer should have been D. But the answer is C. How? Please can you explain to me.On what you have typed, I think the answer is $81 as well, which is none of the choices available.
You would be better buying a Revision Kit from one of the ACCA approved publishers rather than finding questions on the internet – the Revision Kits contain proper part exam and exam-standard questions, together with answers and explanations.
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