oaklown 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 $337600. During that time, the company produced 14,100 units of the M-008 and 2.800 units of the M-123. The direct costs of production were as follows. Direct materials Direct labor M-288 M-123 5112,800 $112,00 112,800 56,000 Total 5 224,888 168, BDO Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows Cost beaven Number of machine-hours Number of production runs Number of inspections Total overhead Costa $165,600 30,000 92,00 3237,600 Activity Level H-001 M-123 1,000 9,000 20 20 20 30 Total 19,690 40 50 Required: .. 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 veed 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 How much overhead will be signed to each product of these three cost drivers are wed to allocate overhead? What is the total cost per produced for each product (Round Tat unit cost to 2 decimal places) cost priver Number of machine-hours Number of production runs Number of inspections Total overhead costs $165,6ee 80,000 92,800 $337,600 1,000 20 28 9, see 20 30 Total 1e, eee -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 cost 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 Red Required B > 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 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
