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Comet Corporation produces two different products: Silver and Gold. Expected production of Silver for the year is 200 units and expected production of Gold for
Comet Corporation produces two different products: Silver and Gold. Expected production of Silver for the year is 200 units and expected production of Gold for the year is 100 units. The additiona following information is available: Budgeted Overhead Costs: Receiving Assembling Machining $828.000 1,860,000 2,420,000 Testing 360,000 Total Overhead Costs 5,468,000 Direct Labor Hours: 44.800 Silver Gold 55,200 100,000 Total Direct Labor Hours Pounds (the cost driver for Receiving): Silver 88.900 31,100 Gold 120,000 10.200 13,800 Total Pounds Number of Parts (the cost driver for Assembling): Silver Gold Total Number of Parts Machine Hours (the cost driver for Machining): Silver Gold 24,000 28,700 11.300 40.000 Total Machine Hours Number of Tests (the cost driver for Testing): Silver 900 Gold 300 1,200 Total Number of Tests Part A: If a single plant-wide rate based on direct labor hours is used, compute the following amounts: 1. The plant-wide overhead rate is per direct labor hour. 2. The overhead costs applied to the Silver product line are 3. The total overhead costs applied to the Gold product line are 4. The per unit overhead cost for the Silver product line is 5. The per unit overhead cost for the Gold product line is Part B: If activity based costing is used, compute the following amounts: 1. The overhead rate for 1. Receiving per pound. 2. Assembling per part 3. Machining per machine hour. 4. Testing per test. 2. The overhead costs applied to the Silver product line: 1. Receiving 2. Assembling 3. Machining 4. Testing 5. Total Overhead Costs Assigned to the Silver product line are 3. The overhead costs applied to the Gold product line: 1. Receiving 2. Assembling 3. Machining 4. Testing 5. Total Overhead Costs Assigned to the Gold product line are 4. The per unit overhead cost for the Silver product line is 5. The per unit overhead cost for the Gold product line is
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