jeff boyer owner of rainking of exercise 5 1 noticed that the watering systems for m 3615792

February 10, 2021/in Business Homework Help Online /by Joseph

Jeff Boyer, owner of Rainking of Exercise 5-1, noticed that the watering systems for many houses in a local subdivision had the same layout and required virtually identical amounts of prime cost. Jeff met with the subdivision builders and offered to install a basic watering system in each house. The idea was accepted enthusiastically, so Jeff created a new company, Waterpro, to handle the subdivision business. In its first three months in business, Waterpro experienced the following:,Required:,1. Should Waterpro use process costing or job-order costing? Explain.,2. If Waterpro uses an actual costing system, what is the cost of a single system installed in June? In July? In August?,3. Now assume that Waterpro uses a normal costing system. Estimated overhead for the year is $60,000, and estimated production is 600 watering systems. What is the predetermined overhead rate per system? What is the cost of a single system installed in June? In July? InAugust?

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