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Part 1 - ABC Use the information below to answer the following questions: Headlights LLC, manufactures two types of headlights for Toyota Corporation. Total overhead
Part 1 - ABC Use the information below to answer the following questions: Headlights LLC, manufactures two types of headlights for Toyota Corporation. Total overhead costs are $100,000 annually for Headlights LLC production. The following three homogeneous cost pools and drivers exist. Products # of Setups Components # of DLH Camry headlights Lexus headlights 20 25 10 15 400 200 Costs per pool $25,000 $55,000 $20,000 1. What is the amount of overhead costs assigned to the Camry model headlight using the technique of ABC? a. $44,444 b. $40,000 c. $46,444 d. $66,667 2. What is the total amount of overhead costs assigned to the Lexus model headlight using the technique of ABC? a. $55,556 b. $53,556 c. $60,000 d. $33,333 3. What is the total amount of overhead costs assigned to the Camry model headlight assuming job costing with one pool, based on direct labor hours? a. $ 37,500 b. $ 27,500 c. $66,667 d. $62,500 4. What is the total amount of overhead costs assigned to the Lexus model headlight assuming job costing with one cost pool, based on direct labor hours? a. $37,500 b. $47,725 c. $42,600 d. $33,333
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