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Commonwealth Devices makes three wearable fitness devices at its Lake Plant: CFit-1, CFit-2, and CFit-Xtra. The company has for many years allocated overhead to products
Commonwealth Devices makes three wearable fitness devices at its Lake Plant: CFit-1, CFit-2, and CFit-Xtra. The company has for many years allocated overhead to products using machine-hours. Last year, the Lake Plant produced and shipped 8,400 units of CFit-1, 15,200 units of CFit-2, and 8,400 units of CFit-Xtra. The plant recorded the following revenues and costs: COMMONWEALTH DEVICES Lake Plant Income Statement CFit-1 CFit-2 CFit-Xtra Total Sales revenue $ 924,000 $ 1,520,000 $ 1,260,000 $ 3,704,000 Direct costs Direct materials 232,000 320,000 280,000 832,000 Direct labor 80,000 92,500 160,000 332,500 Variable overhead Machine setup 232,000 Order processing 184,000 Materials handling 232,000 Machining 136,000 Shi
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