Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shady Fabrication Group (SFG) manufactures components for manufacturing equipment at several facilities. The company produces two, related, parts at its Park River Plant, the models

image text in transcribed
image text in transcribed
Shady Fabrication Group (SFG) manufactures components for manufacturing equipment at several facilities. The company produces two, related, parts at its Park River Plant, the models SF-08 and SF-48. The differences in the models are the quality of the materials and the precision to which they are produced. The SF 48 model is used in applications where the precision is critical and thus requires greater oversight in the production process. Although soles remain reasonably strong, managers at SFG have noticed thot the company is meeting more resistance to the pricing for SF-08, although there seems to be little need for negotiation on the price of the SF- 48 model. As a result, the marketing manager at SFG has asked the financial staff to review the costs of the fwo products to understand better what might be happening in the market. Manufocturing overhead is currently assigned to products based on their direct labor costs. For the most recent month manufacturing overhead was $199,800. During that time, the company produced 8,880 units of Model SF-08 and 2,220 units of Model SF-48. The direct costs of production were as follows: Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last month were as follows: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overheod? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. How much overhead will be assioned to each product if these three cost dilvers are used to allocate overhead? What is the total cost per unit produced for each product? Note: Round "Total unit cost' to 2 deormal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Custom Edition For National American University

Authors: Charles T. Horngren, Walter T. Harrison Jr, M. Suzanne Oliver

9th Edition

1256297585, 978-1256297581

More Books

Students also viewed these Accounting questions

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago