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Amazon developed a sales forecast of Product W to be 64,000 units in April, 79,000...

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Accounting

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Amazon developed a sales forecast of Product W to be 64,000 units in April, 79,000 units in May, and 74,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Due to excessive production during March, on March 31 there were 29,000 units of Product W in the ending inventory. Given this information, Amazon's production of Product W for the month of April should be:

64,000 units.

66,600 units.

79,000 units.

70,000 units.

Tesla produces two products, S and X. Overhead costs are currently allocated using the number of units manufactured as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information: SX 12 28 Activity Production setups Material handling Packaging costs Cost Driver Number of setups Number of parts Number of units Amount $ 73,000 42,000 153,750 $ 268,750 75,000 50,000 What is the total overhead allocated to Product X using the current system? $121,000. $161,250 $147,750 $107,500

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