Ellis Perry is an electronics components manufacturer. Information about the company's two products follows:

$\backslash$table$[[,,,],[$Units produced,AM$-2,$FM$-9,],[$Direct labor hours required for production,$15,000,2,000,],[$Units per batch,$15,000,14,000,],[$Shipping weight per unit,$3,000,50,]]$

The company incurs $$899,000$ in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Required

$3.$ How much overhead will be allocated to each product using the traditional direct labor hours allocation base? What overhead cost per unit will be allocated to each product?

$17$

$18$

$19$

$20$

$21$

$22$

$23$

$25$

$26$

$27$

$28$

$29$

$30$

$31$

$.$ Assume that Ellis Perry has identified three activity cost pools.

$\backslash$table$[[$Pool$,$Cost,$],[$Assembly$,$$$638,000,$Cost Driver$],[$Setup$,121,500,$Number of setups $(1$ per batch$)],[$Packaging$,139,500,$Weight$]]$

product?

Solve:

Overhead Rate

Number of units produced

$\backslash$table$[[32],[34],[35],[36],[37]]$

$38$

$40$

Pool

Assembly

Setup product?

Solve: