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Superindo Company manufactures a variety of high- and low-volume products, including Product 365, in its Bekasi-West Java plant. The following information pertains to the most
Superindo Company manufactures a variety of high- and low-volume products, including Product 365, in its Bekasi-West Java plant. The following information pertains to the most recent year: Total for Product 365 Total for Bekasi-West Java Unit level overhead $ 200,000 Batch-Level Overhead 300,000 Product-Level Overhead 500,000 Plant-Level Overhead 400,000 Total Overhead $1,400,000 Unit produced 5,000 Direct Labor hours 20,000 Machine hours 10,000 Setups 120 Setup hours 500 Design changes 40 Design hours 280 4,000 Required: 1. If the Bekasi-West Java Plant accumulates all overhead in a single cost pool and allocates it on the basis of machine-hours, how much overhead cost will be allocated to a unit of product 365? 2. If the Bekasi-West Java Plant uses Activity-Based Costing System with setups as the driver for all batch-level overhead, design hours as the driver for all product-level overhead, and machine hours as the driver for all unit and plant-level overhead, how much overhead costs will be allocated to a unit of Product 365
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