Monte Company produces ski boots. At the beginning of the year, the cost manager estimated that…


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Monte Company produces ski boots. At the beginning of the year, the cost manager estimated that… 1 answer below » Monte Company produces ski boots. At the beginning of the year, the cost manager estimated that overhead costs would be $11,640,000 and that the units produced would be 1,200,000. Actual data concerning production for the past year follow: Quarter 1   Quarter 2    Quarter 3   Quarter  4           Total View complete question » Units produced 400,000 160,000 80,000          560,000 1,200,000 Prime costs $8,000,000 Monte Company produces ski boots. At the beginning of the year, the cost manager estimated that overhead costs would be $11,640,000 and that the units produced would be 1,200,000. Actual data concerning production for the past year follow: Quarter 1   Quarter 2    Quarter 3   Quarter  4           Total Units produced 400,000 160,000 80,000          560,000 1,200,000 Prime costs $8,000,000 $3,200,000 $1,600,000 $11,200,000 $24,000,000 Overhead costs $3,200,000 $2,400,000 $3,600,000 $2,800,000 $12,000,000 Required 1.    Calculate the unit cost for each quarter and for the year using the following costs: a.      Actual prime costs b.      Actual overhead costs c.       Actual total manufacturing costs 2.    What do the calculations in Requirement 1 tell you about actual costing? 3.    Using supporting calculations, describe how normal costing would work. View less » Jan 06 2016 01:06 PM

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