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hello can i have the answer please Exercise 2 (4 points) Costume Kings has two product lines: machine-made costumes and hand-made costumes. The company assigns
hello can i have the answer please
Exercise 2 (4 points) Costume Kings has two product lines: machine-made costumes and hand-made costumes. The company assigns $80,000 in manufacturing overhead costs to two cost pools: power costs : $ 32,000 and inspection costs $ 48,000 Additional information about each product line is shown below: Machine-Made Hand-Made Sales revenues $240 000 $160 000 Direct labor and materials costs $120 000 $96 000 Units produced and sold 48 000 16 000 Machine hours 96 000 4000 Square feet of production space 1 200 800 Materials orders received 150 100 Quality control inspection hours 2000 500 . Questions : 1- Please, allocate the manufacturing overhead from the activity cost pools to each product line. Use what you believe are the most significant cost drivers from the information provided. Indirect cost allocation (ins) Amount in cost driver INDIRECT COSTS Inbr of cost drivers Cost of 1 cost driver in Machine made Hand made power costs 32 000 inspection costs 48 000 2. Compute the cost per unit of machine-made costumes and handmade costumes Product costing (per unit) in$ Machine made Hand made Direct costs power costs Indirect costs inspection costs total indirect costs Total costing 3- Which product line appears to be the most profitable? Explain. Products margins Machine made Hand made Product costing (ins) Selling price ins) Margin (ins) margin in % Comments Step by Step Solution
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