Question
Day 5] 3 4.28 points allook Perences Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of
Day 5] 3 4.28 points allook Perences Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $316,000. During that time, the company produced 14,500 units of the M-008 and 2.100 units of the M-123 The direct costs of production were as follows Direct materials Direct labor H-008 M-123 $116,000 504,000 116,000 42,000 Total $200,000 158,000 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Cost Oriver Number of machine-hours Number of production runs Number of inspections Total overhead Activity Level Costs $130,000 M-000 11-123 Total 8,000 2,000 90,000 10 30 10,000 40 96,000 $320,000 25 25 50 Required: . How much overhead will be assigned to each product if these three cost drivers are used to alocate overhead? What is the total cost per unit produced for each product PH kanto Al art? What is the ani chat h How much of the auerhear will he ask Help Sove & Exit Submit Check my work
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