#1-4 points Double Trouble Company makes two products, Octo and Gone in a Their accounting system allows them to accurately track dect costs per unit comotive indtry Octo Gone Direct Materials $25.00 $50.00 Direct Labour $35.00 $30.00 The Company has been allocating $200.000 factory overhead based on 10.000 machine hours (which is $20 per machine hour) Octo: $20 x 4.000 machine hours/2.000 units-$40 per unit Gone: $20 x 6,000 machine hours/1.000 units $120 per unit The selling price is cost + 50% markup. Octo has a selling price of: ($25 DM $35 DL Gone has a selling price of ($50 DM+$30 DL $40 FOH) x 1.50-$150 $120 FOH) x1.50-$300 The Company has been selling lots of Octo but having trouble selling Gone. The Company has also been losing money recently. A study of factory activities shows the following information Factory Activity Overhead Cost Total Activity $ 30,000 Grinding 3,000 Machine Hours $ 14,000 Precisioning 7,000 Machine Hours $ 90,000 Moving Parts 22,500 Moves 66.000 Testing 3,000 Units $ 200,000 Further inspection revealed the following activities related to Octo and Gone Used by Octo Used by Gone Grinding 1,600 1.400 Precisioning 5,000 2,000 parts 18,000 4,500 1,000 Quizzes/122837/take A study of factory activities shows the following information: Factory Overhead Cost Activity Total Activity $ SS 30,000 Grinding 3,000 Machine Hours $ 14,000 Precisioning 7,000 Machine Hours 90,000 Moving Parts 22,500 Moves 66.000 Testing 3,000 Units $ 200,000 Further inspection revealed the following activities related to Octo and Gone: Used by Octo Used by Gone Grinding 1,600 1,400 Precisioning 5,000 2,000 Moving parts 18,000 4,500 Testing 2,000 1,000