Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs
Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below.
Activity | Driver | Estimated Total Overhead Cost | Jackets | Hats |
Setups | # of setups | $ 150,000 | 750 setups | 1,500 setups |
Ordering parts | # of parts | 300,000 | 60,000 parts | 40,000 parts |
Machining | # of machine hours | 600,000 | 12,000 machine hrs. | 6,000 machine hrs. |
Inspections | # of inspections | 550,000 | 15,000 inspections | 47,000 inspections |
Shipping | # of shipments | 300,000 | 10,000 shipments | 10,000 shipments |
Total overhead | $1,900,000 |
A. | $27.50 per inspection |
B. | $8.87 per inspection |
C. | $36.67 per inspection |
D. | $11.70 per inspection |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started