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Crane is an electronics components manufacturer. Information about the companys two products follows: PLEASE EXPLAIN HOW TO ALLOCATE THE OVERHEAD COSTS. IM HAVING TROUBLE UNDERSTANDING.

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Crane is an electronics components manufacturer. Information about the companys two products follows:

image text in transcribed

PLEASE EXPLAIN HOW TO ALLOCATE THE OVERHEAD COSTS. IM HAVING TROUBLE UNDERSTANDING. THANKS!

Crane is an electronics components manufacturer Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 - 25.000 12.500 5.000 0.50 lbs FM-9 4.000 15.000 400 10 lbs. The company incurs $935,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (a) Your answer is correct. 6) 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. 45,286.) AM-2 FM-9 $ 4215.000 $ Overhead allocated to each product 510,000 (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 $ 1275 Overhead cost per unit eTextbook and Media Attempts: 1 of 15 used (b) Assume that Crane has identified three activity cost pools. Pool Assembly Setup Packaging Cost $ $687.500 37,500 210,000 Cost Driver Direct labor hour's Number of setups (1 per batch) Weight (1) 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. 45,286.) 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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