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Business, 08.04.2021 21:30 wavy419

Nichols Inc. manufactures remote controls. Currently the company uses a plant−wide rate for allocating manufacturing overhead. The plant manager is considering switching−over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as​ follows: Activities Cost driver Allocation Rate Material handling Number of parts $5 per part Assembly Labor hours $20 per hour Inspection Time at inspection station $10 per minute The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $200 per labor hour. What are the indirect manufacturing costs per remote control assuming an activity−based−costing method is used and a batch of 100 remote controls are​ produced? The batch requires 460 ​parts, 5 direct manufacturing labor​ hours, and 17 minutes of inspection time.

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