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Rocky makes two products, Cuff and Link, and has the following costs: Direct materials Direct labor Cuff $15,000 $20,000 Link $19,000 $24,000 Rockys overhead costs
Rocky makes two products, Cuff and Link, and has the following costs:
Direct materials Direct labor
Cuff $15,000 $20,000
Link $19,000 $24,000
Rockys overhead costs of $88,000 are allocated based on direct material cost. Assume that 8,000 units of Cuff are produced and 10,000 units of Link are produced. What is the total amount of production costs that will be accumulated for the Link product line?
(b) Assume that that the overhead is allocated based on units produced answer the same question
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