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HD makes 2 products: TOTAL HRS IN TOTAL HRS IN TOTAL UNITS MACHINING ASSEMBLY HOURS BX1 1,000 2,000 3,600 5,600 KR2 1,200 3,000 2,400 5,400
HD makes 2 products:
TOTAL HRS IN | TOTAL HRS IN | TOTAL | ||
UNITS | MACHINING | ASSEMBLY | HOURS | |
BX1 | 1,000 | 2,000 | 3,600 | 5,600 |
KR2 | 1,200 | 3,000 | 2,400 | 5,400 |
5,000 | 6,000 | 11,000 | ||
OVERHEAD COSTS | ||||
MACHINING DEPT | $ 800,000 | |||
ASSEMBLY DEPT | $ 1,200,000 |
Hours in the machining department are referred as machine hours
Hours in the assembly department are referred as labor hours.
How much overhead cost per unit should be allocate to product KR2, if machining overhead cost is allocated based on machine hours and assembly overhead costs are allocated based on labor hours?
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