Allocation of Manufacturing Overhead with Multiple Products Macey Sprinkling Company produces two types of pipe: (1) lawn sprinkler pipe and (2)

building sprinkler pipe. Relevant information for the production of the two types of pipe for 2009 is as follows:

Macey allocates utilities and support staff costs on the basis of production volume, quality control costs on the basis of number of machine setups required, and purchasing department costs on the basis of number of purchase orders. During 2009, volume of these various activities per product line was:

Required:
1. Determine the cost per unit for each cost driver.
2. Determine the amount of manufacturing overhead to be assigned to the two types of sprinkler pipe.
3. Determine the total cost for each type of pipe produced for the year.

Transcribed Image Text:

Feet produced Direct materials and direct labor costs Manufacturing overhead costs: Utilities... Support staff Quality control Purchasing. Lawn Sprinkler Pipe Building Sprinkler Pipe 325,000 $243,750 150,000 $123,000 $75,000 $40,000 63,000 35,750 8,000 4,060 19,200 10,250