Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9) younger, Inc. manufactures recliners for the hotel industry. It has two products, the Heater and the Massager, and total overhead is $3,160,000. The company
9)
younger, Inc. manufactures recliners for the hotel industry. It has two products, the Heater and the Massager, and total overhead is $3,160,000. The company plans to manufacture 400 Heaters and 100 Massagers this year. In manufacturing the recliners, the company must perform 600 material moves for the Heater and 400 for the Massager; it processes 900 purchase orders for the Heater and 700 for the Massager; and the companys employees work 1,400 direct labor hours on the Heater product and 3,400 on the Massager. Youngers total material handling costs are $2,000,000 and its total processing costs are $1,160,000. Using ABC, how much overhead would be assigned to the Heater product?
a.
$1,307,500
b.
$2,238,332
c.
$1,852,500
d.
$1,580,000
10)
one of Stine Companys activity cost center is machine setups, with estimated overhead of $360,000. Stine produces sparklers (300 setups) and lighters (700 setups). How much of the machine setup cost center should be assigned to sparklers?
a.
$360,000
b.
$108,000
c.
$144,000
d.
$252,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started