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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 Budgeted Overhead Cost Budgeted Cost Driver Level Cost Driver
Machinery depreciation/maintenance $ 171,276 25,200 Machine hours
Factory depreciation/utilities/insurance 122,340 25,200 Machine hours
Product design 587,232 37,140 Hours in design
Material handling 1,125,528 204,000 Pounds of raw materials

In addition, Shaver expects to spend $489,360 for 8,156 direct labor-hours. Two current product orders had the following requirements:

Mens Razors Womens Razors
Units produced and sold 19,000 24,000
Direct labor hours 50 60
Pounds of raw materials 625 515
Hours in design 40 43
Machine hours 62 47

What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor dollars?

Multiple Choice

  • $2,350.00.

  • $15,252.00.

  • $250.10.

  • $12,300.00.

  • $15,252.00.

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