Chrome File Edit View History Bookmarks People Tab Window Help Thu Jul 29 7:01 PM Question XM MHE Rea M blah-jfs x | Focus T2 Memphis X Memphis X MMM at x Big Carte X UofMon Grades - X Course HX + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/a... Ch. 9 Required Assignment (Graded) 1 Saved Help Save & Exit Submit 2 points eBook Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $324,800. During that time, the company produced 12,800 units of the M-008 and 3,000 units of the M-123. The direct costs of production were as follows. Print References M-008 Direct materials $102,400 Direct labor 102,400 M-123 $120,000 60,000 Total $222,400 162,400 Mc Graw Hill Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Cost Driver Number of machine-hours Number of production runs Number of inspections Total overhead Costs $147,300 80,000 97,500 $324,800 Activity Level M-008 M-123 1,000 9,000 20 20 20 30 Total 10,000 40 50 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost 7,519 JUL 29 < Prev 1 of 5 Next > tv A W Check my work M M Chrome File Edit View History Bookmarks People Tab Window Help Thu Jul 29 7:01 PM Question X M MHE Rea M blah - jfs Focus T2 X Memphis X Memphis X MMM at x Big Carte X UofMon Grades - X Course HX + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/a... Ch. 9 Required Assignment (Graded) Saved 1 Number or production runs Number of inspections Total overhead , 97,500 $324,800 20 20 20 30 40 50 Help Save & Exit Submit 2 points eBook Print References Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. Mc Graw Hill Required A Required B How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost" to 2 decimal places.) M-008 M-123 Total overhead $ 204,800 $ 120,000 Total unit cost 7,519 JUL 29 < Required A Required B < Prev 1 of 5 Next > tv A W Check my work M M