education wiley.com Question 3 of 3 A Fabrication S Mber of proced Overwater Textbook and Ma 3 W E S D R osts-399-4765-0-37133015 Comple Complex 20/40 5 7 8 G H c Dill " 2 W Your answer is correct. Using the traditional method of allocating overhead costs, allocate overhead cost to the products. show that the overhead assigned to each product sums to the total company overhead. determine the overhead cost per unit for each product. (Round overhead rate and overhead per unit answers to 2 decimal places, eg 15.25) Machine hours Simple B0000 Complex Total 30000 Overhead rate $ 20 $ 20 Total overhead to product $ 1600000 600000 Simple Total overhead to product $ Number of units produced i Overhead per unit 80 F3 01 FA #3 3 4 Complex 1600000 $ 100000 16 % 85 6 600000 40000 15 2200000 F6 8 F7 411 FB LLI E R T Y 28 & 7 8 9 U D F9 Question 3 of 3 View Policies Show Attempt History 20/40 1 Current Attempt in Progress Sunland makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $2,200,000 Rate Assembly $0.80 per direct labor hour Fabrication Setups Bonding $15 per machine hour $20 per batch $128.000 direct to Complex Only the Complex product requires bonding, so all the costs of bonding should be allocated to Complex. The following data relate to both products Simple Complex Units produced 100,000 40.000 Direct labor hours 220.000 170.000 Machine hours 80,000 30,000 Batches 1,500 4.000 2 (a) Your answer is correct 80 73 02 % 25 74 =3 W E R F6 9> & 6 7 T Y 8 F7 DII FS D 19 00 8 9 U I O