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7. 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

7. 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 $ 169,386 24,600 Machine hours
Factory depreciation/utilities/insurance 120,990 24,600 Machine hours
Product design 580,752 36,720 Hours in design
Material handling 1,113,108 222,000 Pounds of raw materials

In addition, Shaver expects to spend $483,960 for 8,066 direct labor-hours. Two current product orders had the following requirements:

Mens Razors Womens Razors
Units produced and sold 24,000 31,000
Direct labor hours 30 40
Pounds of raw materials 784 674
Hours in design 20 23
Machine hours 69 54

What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor dollars?

  • $1,620.00.

  • $11,316.00.

  • $250.10.

  • $7,380.00.

  • $16,974.00.

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