Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers:

Required:
1. Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 70 percent of the labor hours and Product B requires 30 percent.
2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver.
Determine the amount of overhead assigned to each product line if Product A consumes 22,100 machine hours and Product B consumes37,700.

Transcribed Image Text:

Total overhead $112,500 Cost drivers Number of labor hours Number of machine hours 2,500 59,800