Brandt Company uses activity-based costing. The company produces Flims and Flams

(microscopic parts used in rocket engines), and its normal activity level is 40,000 cases of Flims and 100,000 cases of Flams. Brandt has $511,200 total factory overhead cost at this expected production volume. It traces its $341,200 total variable factory overhead costs to two activity pools as follows: direct labor related, $197,200; inspection related,

$144,000. In regard to these activity pools, Brandt expects to use 68,000 direct labor hours (DLH), of which 8,000 are for Flims and 60,000 are for Flams. It expects the factory to conduct 80,000 inspections (IN), of which 20,000 are for Flims and 60,000 are for Flams.

Brandt has $170,000 of fixed factory overhead costs that are not traceable to an identifiable cost driver. It assigns these costs to cases based on 68,000 direct labor hours. It takes 0.2 direct labor hours to produce a case of Flims and 0.6 direct labor hours to produce a case of Flams.

Required: (1) Determine Brandt’s total overhead cost per case of Flims and per case of Flams.

(2) Assuming Brandt produces 40,000 cases of Flims and 100,000 cases of Flams during the coming year, apply its factory overhead to each case of the products. LKY-1