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Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units
Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is as follows:
Number of units | Machine hours (MH) | Direct labor hours (DLH) | |
Bear | 2,000 | 5,000 MH | 700 DLH |
Puppy | 4,000 | 3,000 MH | 1,000 DLH |
Bunny | 6,000 | 2,000 MH | 2,300 DLH |
The total machine running costs incurred during the year is $150,000. The allocation of machine running costs to these three items is based on machine hours.
How much machine running costs are expected to be allocated to Bunny during the year?
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