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4. Shaver Co. manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information
4. Shaver Co. manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool | Budgeted Overhead Cost | Budgeted Cost Driver Level | Cost Driver | |||
Machinery depreciation/maintenance | $ | 199,528 | 28,504 | Machine hours | ||
Factory depreciation/utilities/insurance | 142,520 | 28,504 | Machine hours | |||
Product design | 684,096 | 43,260 | Hours in design | |||
Material handling | 1,311,184 | 245,000 | Pounds of raw materials | |||
In addition, Shaver expects to spend $570,080 for 8,144 direct labor-hours. Two current product orders had the following requirements:
Mens Razors | Womens Razors | |||||
Units produced and sold | 24,000 | 32,000 | ||||
Direct labor hours | 50 | 60 | ||||
Pounds of raw materials | 643 | 533 | ||||
Hours in design | 40 | 43 | ||||
Machine hours | 67 | 52 | ||||
Using ABC, how much facility-level overhead is assigned to the current order for Men's Razors?
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$287.00.
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$291.10.
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$804.00.
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$578.10.
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$2,881.00.
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