Question
Concord is an electronics components manufacturer. Information about the companys two products follows: AM-2 FM-9 Units produced 15,300 1,950 Direct labor hours required for production
Concord is an electronics components manufacturer. Information about the companys two products follows: AM-2 FM-9 Units produced 15,300 1,950 Direct labor hours required for production 23,000 26,000 Units per batch 3,000 50 Shipping weight per unit 0.50 lbs. 4 lbs. The company incurs $1,487,095 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,000.) AM-2 FM-9 Overhead allocated to each product $ $ (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 $ $
Assume that Concord has identified three activity cost pools. Pool Cost Cost Driver Assembly $1,225,000 Direct labor hours Setup 116,865 Number of setups (1 per batch) Packaging 145,230 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. 45,000.) AM-2 FM-9 Total allocated overhead $ $ (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 $ $
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