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12) Blalock Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of

 

12) Blalock Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $10 per direct labor hour. Department A produces Products #101X and #102Y. Department A has $262,000 in traceable overhead. Department B manufactures Product #103Z. Department B has $128,000 in traceable overhead. The product costs (per unit) and other information are as follows: Direct materials Direct labor Overhead Machine hours (per unit) Number of cases (per year) 101X $ 60.00 42.00 40.00 Products 102Y $ 58.00 31.50 30.00 103Z $ 46.00 12.00 20.00 $ 142.00 $ 119.50 $ 78.00 4 2 3 3,000 5,000 6.000 Required: a. If Blalock changes its allocation basis to machine hours, what is the total overhead cost per unit for Product 101X, 102Y, and 103Z? b. If Blalock changes its overhead allocation to departmental rates, what is the overhead cost per unit for Product 101X, 102Y, and 103Z, assuming Departments A and B use direct labor hours and machine hours as their respective allocation bases? 4 Version 1

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