Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

  • $287.00.

  • $291.10.

  • $804.00.

  • $578.10.

  • $2,881.00.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions