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I need Help with Part B Sheridan is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required
I need Help with Part B
Sheridan is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 25,000 12,500 5,000 0.50 lbs. FM-9 5,000 15.000 500 10.00 lbs. The company incurs $825,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (a) Your answer is correct. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,000.) AM-2 FM-9 $ 375000 $ 450000 Overhead allocated to each product (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 $ 15 90 Overhead cost per unit e Textbook and Media Attempts: 1 of 3 used (b) Assume that Sheridan has identified three activity cost pools. Pool Assembly Setup Packaging Cost $687,500 37,500 687,500 Cost Driver Direct labor hours Number of setups (1 per batch) Weight (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rate to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,000.) AM-2 FM-9 $ $ Total allocated overhead (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 $ $ Overhead cost per unitStep by Step Solution
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