Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cost Drivers by Produ Cost Driver Orders Setups Machine hours Number of Parts Inspections Est. Overhead $ 120,000 297,000 1,000,000 1,600,000 300,000 Budget Deluxe Activity
Cost Drivers by Produ Cost Driver Orders Setups Machine hours Number of Parts Inspections Est. Overhead $ 120,000 297,000 1,000,000 1,600,000 300,000 Budget Deluxe Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection 600 500 150,000 1,400,000 550 400 400 100,000 800,000 450 Instructions A. Compute the estimated overhead cost per unit for each product. Production is 700,000 units of Budget and 200,000 units of Deluxe. Round your answer to the nearest cent B. Assume Sonoma used a more traditional OH allocation method and used only machine hours to allocate MOH. How much overhead would be assigned to each product and what are the estimated unit OH for each product? The company estimates that DM costs for the Budget model are $2.10 per unit and the DL costs are $3.40. The DM costs for the Deluxe model are $9.40 and the DL costs are $4.10 The company has received three orders, Customer A wants 1000 units of the budget tape vacuum, Customer B wants 3000 units of the budget item and 4000 units of the deluxe item and Customer C wants 10,000 units of the Deluxe model. The requirements for each job are listed below: C. D. Customer C Budget Customer A Customer B Budget Deluxe Budget Deluxe Deluxe Customer Cost Driver Orders Setups MHou Parts Inspections 1 8 7 2,000 16,000 18 16 5,000 40,000 20 600 6,000 200 2000 Calculate the total costs for each customer's job and the unit costs for each product in their order
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started