Department D has recently purchased and installed new computerized equipment for Product X.This equipment will increase the overhead costs by $2,700 and decrease labor costs (due to time savings)in Department D by $3.00 per case.Machine hours will not change.If Smelly uses a plantwide rate based on direct labor hours,what is the revised product cost per case for Product X?
A)$82.50
B)$74.00
C)$79.50
D)$69.50

Question

Quizplus · Accepted Answer

The Answer of Department D has recently purchased and installed new computerized equipment for Product X.This equipment will increase the overhead costs by $2,700 and decrease labor costs (due to time savings)in Department D by $3.00 per case.Machine hours will not change.If Smelly uses a plantwide rate based on direct labor hours,what is the revised product cost per case for Product X?
A)$82.50
B)$74.00
C)$79.50
D)$69.50

Department D Has Recently Purchased and Installed New Computerized Equipment