Question
ABC Odyssey Inc. has a total of $5,670,000 in production overhead costs. The companys products and related statistics follow. Product A Product B Direct material
ABC Odyssey Inc. has a total of $5,670,000 in production overhead costs. The companys products and related statistics follow.
Product A | Product B | |
---|---|---|
Direct material in pounds | 139,500 | 190,500 |
Direct labor hours | 30,000 | 37,500 |
Machine hours | 52,500 | 22,500 |
Number of setups | 430 | 860 |
Number of units produced | 15,000 | 7,500 |
Additional data: The 330,000 pounds of material were purchased for $1,306,800. One direct labor hours costs $28.80.
a. Assume that Odyssey Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36).
Product A | Product B | |
---|---|---|
Total cost | Answer | Answer |
Total cost per unit | Answer | Answer |
b. Assume that Odyssey Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36).
Product A | Product B | |
---|---|---|
Total cost | Answer | Answer |
Total cost per unit | Answer | Answer |
c. Assume that Odyssey Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products:
Cost Pool | Cost Driver | Cost |
---|---|---|
Utilities | # of machine hours | $1,800,000 |
Setup | # of setups | 464,400 |
Material handling | # of pounds of material | 3,405,600 |
Determine the total cost for each product and the cost per unit. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36).
Product A | Product B | |
---|---|---|
Total cost | Answer | Answer |
Total cost per unit | Answer | Answer |
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