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Lambda Manufacturing produces two types of watches: smart and digital. The watches are produced using one continuous process. Four activities have been identified: machining, setups,
Lambda Manufacturing produces two types of watches: smart and digital. The watches are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows: Setups 200 Receiving Orders 300 Packing Orders 500 Product Smart Digital Costs Machine Hours 12,000 12,000 $90,000 800 700 2,500 $50,000 $10,000 $30,000 Calculate the total overhead assigned to the smart watches, using only machine hours to calculate a plantwide rate. (Note: Round the plantwide rate to two decimal places.) - $45,000 - $90,000 $63,000 o $117,000
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