80.2K

Verified Solution

Link Copied!

Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 25,000 12,500 5,000 0.50 lbs. FM-9 5,000 15,000 500 10 lbs. The company incurs $885,500 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (a) Your answer is correct. (1) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unit rates to 2 decimal places, eg, 3.54 and final answers to O decimal places, e.g. 45,000.) AM-2 FM-9 402500 483000 Overhead allocated to each product Type here to search o a (11) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, eg. 15.25.) AM-2 FM-9 16.10 Overhead cost per unit $ 96.60 e Textbook and Media Attempts: 1 of 3 used (b) Assume that Vaughn has identified three activity cost pools. Pool Assembly Setup Packaging Cost $632,500 40.500 212.500 Cost Driver Direct labor hours Number of setups (1 per batch) Weight (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to O decimal places, e.g. 45,000.) Type here to search O 19 P2 a W Assume that Vaughn has identified three activity cost pools. Pool Assembly Setup Packaging Cost $632,500 40,500 212,500 Cost Driver Direct labor hours Number of setups (1 per batch) Weight c. Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per to 2 decimal places, eg. 3.54 and final answers to O decimal places, eg. 45,000.) AM-2 FM-9 S Total allocated overhead ( What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 $ Overhead cost per unit Type here to search o Paw a a W

Answer & Explanation Solved by verified expert

See Answer