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Product Name Direct Material Direct Labor Units # of Machine Setups Machine Hours Direct Labor Hours # of Orders Echo $ 2 4 2 ,

Product Name

Direct Material

Direct Labor

Units

# of Machine Setups

Machine Hours

Direct Labor Hours

# of Orders

Echo

$242,000

$398,475

25,300

15

379,500

18,975

250

Core

$238,000

$913,500

58,000

20

870,000

43,500

610

Bronze

$237,000

$645,750

41,000

18

615,000

30,750

430

Silver

$228,900

$159,600

8,750

8

131,250

7,600

180

Requirements

After constructing your spreadsheet answer the following questions?

What is the cost per unit of each product when direct labor hours are used as the cost driver for overhead allocation? (should be 4 answers)

How much overhead is allocated to the Echo product line when machine hours are used as the cost driver for overhead allocation?

What is the total cost of the Bronze product line when # of orders are used as the cost driver for overhead allocation?

What is the cost per unit of the Silver product line when the # of machine setups is used as the cost driver for overhead allocation?

What is the allocation rate when machine hours are used as the cost driver?


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