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Calculate the costs of A and B after allocating costs using direct labor hours as the only allocation basis. That is, compute a single rate
Calculate the costs of A and B after allocating costs using direct labor hours as the only allocation basis. That is, compute a single rate for the entire plant. Attachment provided.
Production Units Selling Price Overhead per unit(base on DL hours) Materials and direct labor cost per unit Number of production runs Number of purchasing and receiving orders processed Number of machine hours Number of direct labor hours Number of engineering hours Number of material moves Part A 100,000 $58 $12.82 $17.06 20 Part B 21,000 $46 $6.10 $12.52 40 80 25,500 50,000 10,000 100 200 12,000 5,000 10,000 80 Outdoor Adventure has monthly overhead of(just manufacturing) of $1,410,000, divided into the activities below Setup costs Machine costs Purchasing and Receiving costs Engineering Costs Materials handling cost. Total $60,000 350,000 420,000 400,000 180,000 $1,410,000Step by Step Solution
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