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Problem 3: In XYZ company assume that the overhead cost is broken into the following components: Manufacturing Overhead Utilities! $5,400 Energy 54,000 Training 76,000 Supervision
Problem 3: In XYZ company assume that the overhead cost is broken into the following components: Manufacturing Overhead Utilities! $5,400 Energy 54,000 Training 76,000 Supervision 131,000 Machine Depreciation 243,000 Plant Depreciation 456,000 Miscellaneous 14,600 1 Machine related overhead 2 Labor related overhead Assume that the indirect cost is $980,000 and the following information for XYZ Production (bottles) Direct Labor-hours... Direct machine-hours.. Direct Materials... Direct Labor..... Orange Juice 1,700,000 20,000 28,000 $350,000 ..........$1,000,000 Mango Juice 900,000 9,000 12,000 $150,000 $300,000 The allocation base for the indirect labor cost is the direct labor-hours the allocation base for indirect machine cost is direct machine-hours respectively. Determine the unit costs for orange and mango juice bottles using Two- Stage Cost Allocation method
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