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Oriole is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 25,000 6,000 Direct labor hours required for production
Oriole is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 25,000 6,000 Direct labor hours required for production 12.500 15,000 Units per batch 5.000 600 Shipping weight per unit 0.50 lbs. 10 lbs. The company incurs $929,500 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 O decimal places, e.g. 45,286.) AM-2 FM-9 $ 422500 Overhead allocated to each product $ 507000 (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 $ 16.9 Overhead cost per unit 84.5 e Textbook and Media Attempts: 1 of 3 used (b) * Your answer is incorrect. Assume that Oriole has identified three activity cost pools. Pool Cost Cost Driver Assembly $632.500 Direct labor hours Setup 36.000 Number of setups (1 per batch) Packaging 261.000 Weight (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to decimal places, e.g. 45,286.) AM-2 FM-9 $ 411000 $ 488000 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 27.46 $ 244 Overhead cost per unit e Textbook and Media Assistance Used Save for Later Attempts: 1 of 3 used Submit
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