Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $ | 169,764 | 24,252 | Machine hours | ||
Factory depreciation/utilities/insurance | 121,260 | 24,252 | Machine hours | |||
Product design | 582,048 | 36,480 | Hours in design | |||
Material handling | 1,115,592 | 162,000 | Pounds of raw materials | |||
|
In addition, Shaver expects to spend $485,040 for 8,084 direct labor-hours. Two current product orders had the following requirements:
Mens Razors | Womens Razors | |||||
Units produced and sold | 22,000 | 30,000 | ||||
Direct labor hours | 40 | 50 | ||||
Pounds of raw materials | 524 | 414 | ||||
Hours in design | 30 | 33 | ||||
Machine hours | 63 | 48 | ||||
|
Using ABC, how much facility-level overhead is assigned to the current order for Men's Razors?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started