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Concord is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued hard cover or a deluxe, hand-embossed, hand-stitched, leather cover. Concord currently allocates overhead to the books based on direct labor hours. A recent activity analysis conducted by the controller revealed the following information. Standard Edition Deluxe Edition Units produced 479,000 10,000 Direct labor hours 526,900 32,000 Printing press hours 91,010 1,900 Sales orders 4,790 10,000.

Calculate the following for each product: (Round answers to 2 decimal places, e.g. 15.25.)

Respuesta :

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Answer:

(1). For the Standard Edition, it is = 526,900/479,000 = 1.1 DLH/unit.

For the Deluxe Edition, it is ,= 32,000/10,000 = 3.2 DHL/unit.

(2). For the Standard Edition, it is = 91,010/479,000 = 0.19 PPH/unit.

For the Deluxe edition= 1,900/10,000 = 0.19 PPH/unit.

(3). For the Standard Edition, it is = 4,790/479000 = 0.01 order per unit.

For the Deluxe edition = 10000/10000= 1 order per unit.

Explanation:

We are given the following parameters or data or infomation which is going to help us in solving this problem;

(A) for the Units produced;

=> Standard Edition = 479,000

=>Deluxe Edition = 10,000.

(B). For the Direct labor hours

=>Standard Edition = 526,900.

=>Deluxe Edition = 32,000.

(C). For the Printing press hours;

=> Standard edition= 91,010.

=> Deluxe edition= 1,900.

(D). For the Sales orders;

=> Standard edition= 4,790.

=> Deluxe edition = 10,000.

Hence;

DIRECT LABOR HOUR OER UNIT:

(1). For the Standard Edition, it is = 526,900/479,000 = 1.1 DLH/unit.

For the Deluxe Edition, it is ,= 32,000/10,000 = 3.2 DHL/unit.

PRINTING PRESS PER HOUR;

(2). For the Standard Edition, it is = 91,010/479,000 = 0.19 PPH/unit.

For the Deluxe edition= 1,900/10,000 = 0.19 PPH/unit.

SALES ORDER PER UNIT

(3). For the Standard Edition, it is = 4,790/479000 = 0.01 order per unit.

For the Deluxe edition = 10000/10000= 1 order per unit.

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