Help Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123. a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $316,800. During that time, the company produced 14,800 units of the M-008 and 2,000 units of the M-123. The direct costs of production were as follows. M-008 M-123 Direct materials $118,400 $80,000 $198,400 Direct labor 118,400 40,000 158,400 Total Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Cost Driver Number of machine-hours Number of production runs Number of inspections Total overhead Coate $140,00 80,000 96.000 $316,800 Activity level M-008 M-123 1.000 9.000 20 20 15 35 Wal 10,000 40 50 Required: a. How much overhead will be assigned to each product If these three cost drivers are used to allocate overhead? What is the total b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. education.com/ext/map/index.html?_con=con&external YGDSVOLLEC ad 10 Homework Saved Cost Driver Number of machine-hours Number of production runs Number of inspections Total overhead Costs $140,800 80,000 96,000 $316,800 M-008 1,000 20 15 M-123 9,000 20 35 Total 10,000 40 50 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead will be assigned to each product if these three ist drivers are used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost to 2 decimal places.) M-008 M-123 Total overhead Total unit cost Cost Driver Number of machine-hours Number of production runs Number of inspections Total overhead Costs $140,000 80,000 96,000 $316,800 M-008 1,000 20 15 M-123 9,000 20 35 Total 10,000 40 50 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct la cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. ances Required A R(quired B How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost to 2 decimal places.) M-008 M.123 Total overhead Total unit cost Required A Begum
