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Bramble is an electronics components manufacturer. Information about the companys two products follows: AM-2 FM-9 Units produced 25,000 5,000 Direct labor hours required for production

Bramble is an electronics components manufacturer. Information about the companys two products follows: AM-2 FM-9 Units produced 25,000 5,000 Direct labor hours required for production 12,500 15,000 Units per batch 5,000 500 Shipping weight per unit 0.50 lbs. 10 lbs. The company incurs $ 907,500 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Assume that Bramble has identified three activity cost pools.

Pool

Cost

Cost Driver

Assembly

$ 632,500 Direct labor hours

Setup

37,500 Number of setups (1 per batch)

Packaging

237,500 Weight

(i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,286.)

AM-2

FM-9

Total allocated overhead

$ enter a dollar amount rounded to 0 decimal places $ enter a dollar amount rounded to 0 decimal places

(ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.)

AM-2

FM-9

Overhead cost per unit

$ enter a dollar amount rounded to 2 decimal places $ enter a dollar amount rounded to 2 decimal places

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