Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided as follows:Overhead activities Overhead costs assigned ($) Number of cost driverMaterial handling$150,000120,000 PartsDevising$400,00050,000 Machine hours (MH)Assembling$180,000120,000 PartsFinishing $170,0004,000 Finishing hours (FH)Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90, respectively. The amount of material handling and assembling costs allocated to each refrigerator would be: (Round your answer to two decimal points)Group of answer choices$21.00 per unit$41.25 per unit$36.00 per unit$82.50 per unit

The objective of the question is to calculate the amount of material handling and assembling costs…

Answered: Evergreen Inc. expects to manufacture…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided as follows:

Overhead activities	Overhead costs assigned ($)	Number of cost driver
Material handling	$150,000	120,000 Parts
Devising	$400,000	50,000 Machine hours (MH)
Assembling	$180,000	120,000 Parts
Finishing	$170,000	4,000 Finishing hours (FH)

Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90, respectively. The amount of material handling and assembling costs allocated to each refrigerator would be: (Round your answer to two decimal points)

Group of answer choices

$21.00 per unit

$41.25 per unit

$36.00 per unit

$82.50 per unit

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