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Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used
Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool | Budgeted Overhead Cost | Budgeted Cost Driver Level | Cost Driver |
---|---|---|---|
Machinery depreciation/maintenance | $ 168,640 | 27,200 | Machine hours |
Factory depreciation/utilities/insurance | 127,840 | 27,200 | Machine hours |
Product design | 554,400 | 38,500 | Hours in design |
Material handling | 1,078,000 | 134,750 | Pounds of raw materials |
In addition, Sharp Company expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements:
Mens Razors | Womens Razors | |
---|---|---|
Units produced and sold | 20,000 | 26,000 |
Direct labor hours | 30 | 40 |
Pounds of raw materials | 860 | 750 |
Hours in design | 20 | 23 |
Machine hours | 65 | 50 |
Using activity-based costing, how much facility-level overhead is assigned to the current order for Men's Razors?
Multiple Choice
$310.00.
$545.00.
$936.00.
$403.00.
$708.50.
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