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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 Overhead Cost $ 198,940 142,100 682,080 1,307,320 Budgeted Cost Driver Level Cost Driver 28,700 Machine hours 28,700 Machine hours 43,190 Hours in design 175,000 Pounds of raw materials In addition, Shaver expects to spend $568,400 for 8,120 direct labor-hours. Two current product orders had the following requirements: Units produced and sold Direct labor hours Pounds of raw materials Hours in design Machine hours Men's Razors Women's Razors 21,000 24,000 50 60 604 494 40 43 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
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