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Shaver Co. manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used
Shaver Co. 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 Machinery depreciation/maintenance Factory depreciation/utilities/insurance Product design Material handling Budgeted Budgeted cost Overhead Cost Driver Level Cost Driver $ 171,150 24,450 Machine hours 122,250 24,450 Machine hours 844, 200 36,720 Hours in design 1,372,800 156,000 Pounds of raw materials In addition, Shaver expects to spend $489,000 for 8,150 direct labor-hours. Two current product orders had the following requirements: Mens Razors 21,000 50 Women's Razors 25,000 60 Units produced and sold Direct labor hours Pounds of raw materials Hours in design Machine hours 479 589 40 67 43 52 Using ABC, how much batch-level overhead is assigned to the current order for Women's Razors based on pounds of raw materials? Multiple Choice $4,482. $4,215. $7,096. $12,610. $3,912
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