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Question 3 of 3 20/40 View Policies Show Attempt History Current Attempt in Progress Jay Krue makes two products, Simple and Complex. As their names suggest. Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $2,400,000: Assembly Fabrication Setups Bonding Rate $0.80 per direct labor hour $15 per machine hour $20 per batch $152,000 direct to Complex Only the Complex product requires bonding so all the costs of bonding should be allocated to complex. The following data relate to both products, Units produced Direct labor hours Machine hours Batches Simple 100,000 250,000 80,000 2.000 Complex 40.000 160,000 40,000 4,000 a Your answer is correct. Using the traditional method of allocating overhead costs, . allocate overhead cost to the products. show that the overhead assigned to each product sums to the total company overhead. determine the overhead cost per unit for each product. (Round overhead rate and overhead per unit answers to 2 decimal places, s. 15.25.) Simple Complex Total Machine hours 80000 40000 $ 20 $ 20 Overhead rate Total overhead to product 1600000 $ 800000 $ 2400000 Simple Complex Total overhead to product 1600000 $ 800000 Number of units produced 100000 40000 Overhead per unit $ 16 5 20 e Textbook and Media Attempts: unlimited (b) Using the activity-based costing rates, . allocate overhead cost to the products, show that the overhead assigned to each product sums to the total company overhead. determine the overhead cost per unit for each product (Round per unit answers to 2 decimal places, e-8. 15.25 Simple Complex Total Assembly 5 Fabrication Setups Bonding Total overhead $ $ Simple Complex Total overhead to product $ $ Number of units produced Overhead per unit $ $ e Textbook and Media Attempts: unlimited Sve to Liter

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