Question
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 PoolBudgeted Overhead CostBudgeted Cost Driver LevelCost DriverMachinery depreciation/maintenance$168,64027,200Machine hoursFactory depreciation/utilities/insurance127,84027,200Machine hoursProduct design554,40038,500Hours in designMaterial handling1,078,000134,750Pounds of raw materials
In addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements:
Men's RazorsWomen's RazorsUnits produced and sold20,00026,000Direct labor hours3040Pounds of raw materials860750Hours in design2023Machine hours6550
What is the total manufacturing overhead assigned to the current order for Women's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor hours?
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