Question
4. Kalamazoo, Inc makes 2 types of horse trailer, The Quatro and the Deuce. Kalamazoo has 2 departments: Fabrication, with an Overhead allocation of $105,000
4. Kalamazoo, Inc makes 2 types of horse trailer, The Quatro and the Deuce. Kalamazoo has 2 departments: Fabrication, with an Overhead allocation of $105,000 and Assembly which is allocated $35,000 of Overhead. Both Departments are budgeted for 100 units of each product.
Fabrication Assembly
Quatro 10 dlh 4 dlh
Deuce 5 dlh 3 dlh
Fabrication Department overhead rate = $70 per dlh
Assembly Department overhead rate = $50 per dlh
Determine the factory overhead allocated per unit for Quatro and Deuce, respectively. (show work for full credit)
A) $750 and $500
B) $500 and $900
C) $900 and $500
D) $855 and $455
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