Browse over 20 million
homework answers & study documents

Accounting

BUS 630 Week 2 Assignment CASE 3A AUERBACH ENTERPRISES

Type

Homework

Rating

Showing Page:
1/4
BUS 630 Week 2 Assignment CASE 3A AUERBACH ENTERPRISES
Ashford University
Managerial Accounting
BUS 630
BUS 630 Week 2 Assignment
MaxiFlow requires direct materials costs which total
$135 per unit, while Alaska’s direct materials
requirements total $110 per unit. Direct labor costs per
unit are $75 for MaxiFlow and $95 for Alaska.
Auerbach Enterprises uses machine hours as the cost
driver to assign overhead costs to the air conditioners.
The company has used a company-wide predetermined
overhead rate in past years, but the new controller,
Bennie Leon, is considering the use of departmental
overhead rates beginning with the next year.
The following planning information is available for the
next year for each the four manufacturing departments
within the company:
Overhead Machine
Costs Hours
Radiator parts fabrication.............. $ 80,000 10,000
Radiator assembly, weld, and test.... 100,000 20,000
Compressor parts fabrication.......... 120,000 5,000
Compressor assembly and test........ 180,000 45,000
Total $480,000 80,000
Normally, the air conditioners are produced in batch
sizes of 20 at a time. A production batch of 20 units
requires the following number of hours in each
department:

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up

Sign up to view the full document!

lock_open Sign Up

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous
Just what I needed… fantastic!

Anonymous
Just what I needed. This document gave me a good start on tailoring my own answer.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4