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Not sure what I'm doing wrong here for the last two to be incorrect. Problem 7-21 Crane is an electronics components manufacturer. Information about the
Not sure what I'm doing wrong here for the last two to be incorrect.
Problem 7-21 Crane 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 13,500 15,000 3,000 FM-9 1,900 14,000 50 0.50 lbs. 4 lbs. The company incurs $814,600 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. 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 AM-2 FM-9 421,344.8 3393,255.1 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 31.21 206.9 Overhead cost per unit$ Your answer is incorrect. Try again. Assume that Crane has identified three activity cost pools. Pool Assembly $580,000 Direct labor hours Setup Cost Cost Driver 112,625 Number of setups (1 per batch) (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 d AM-2 FM-9 424,342.78 390,268.74 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 27,162.49 27,162.49 Overhead cost per unitStep by Step Solution
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