Sunland is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 25,000 5,000 Direct labor hours required for production 12,500 15,000 Units per batch 5.000 500 Shipping weight per unit 0.50 lbs. 10 lbs. The company incurs $899,250 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (a) X Your answer is incorrect. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to decimal places, e.g. 45,286.) AM-2 FM-9 $ 417,500 $ 501,000 Overhead allocated to each product (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 $ 16.70 $ Overhead cost per unit 100.20 (b) Assume that Sunland has identified three activity cost pools. Pool Cost Cost Driver Assembly $577,500 Direct labor hours Setup 40,500 Number of setups (1 per batch) Packaging 281,250 Weight (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,286.) AM-2 FM-9 $ $ Total allocated overhead (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 $ $ Overhead cost per unit Sunland is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 25,000 5,000 Direct labor hours required for production 12,500 15,000 Units per batch 5.000 500 Shipping weight per unit 0.50 lbs. 10 lbs. The company incurs $899,250 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (a) X Your answer is incorrect. (i) How much overhead will be allocated to each product using the traditional direct labor hours allocation base? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to decimal places, e.g. 45,286.) AM-2 FM-9 $ 417,500 $ 501,000 Overhead allocated to each product (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 $ 16.70 $ Overhead cost per unit 100.20 (b) Assume that Sunland has identified three activity cost pools. Pool Cost Cost Driver Assembly $577,500 Direct labor hours Setup 40,500 Number of setups (1 per batch) Packaging 281,250 Weight (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,286.) AM-2 FM-9 $ $ Total allocated overhead (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.) AM-2 FM-9 $ $ Overhead cost per unit
