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Exercise Question 157 Likewise Instruments manufactures a variety of electronic instruments that are used in military and civilian applications. Sales to the military are generally
Exercise Question 157 Likewise Instruments manufactures a variety of electronic instruments that are used in military and civilian applications. Sales to the military are generally on a cost-plus-profit basis with profit equal to 10 percent of cost. Instruments used in military applications require more direct labor time because "fail-safe" devices must be installed. At the start of the year, Likewise estimates that the company will incur $50,000,000 of overhead, $8,000,000 of direct labor, and 250,000 machine hours. Consider the Model ET40 gauge that is produced for both civilian and military uses: Direct material Direct labor Machine hours Civilian $3,000 $ 900 42 Military $3,500 $1,200 45 (a) Calculate the cost of civilian and military versions of Model ET40 using both direct labor dollars and machine hours as alternative allocation bases. (Round intermediate calculation to 2 decimal places, e.g. 3.51 and final answers to 0 decimal places, e.g. 125.) Civilian Military Labor Dollars Machine Hours Labor Dollars Machine Hours Cost $ Show Work is REQUIRED for this question: Open Show Work
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