Swifty is an electronics components manufacturer. Information about the companys two products follows: AM-2 FM-9 Units produced 20,000 6,000 Direct labor hours required for production 10,000 15,000 Units per batch 4,000 600 Shipping weight per unit 0.50 lbs. 10.00 lbs. The company incurs $775,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Swifty is an electronics components manufacturer. Information about the company's two products follows: FM-9 6,000 Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 20,000 10,000 4,000 0.50 lbs. 15,000 600 10.00 lbs. The company incurs $775,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (a) Your answer is correct. (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 O decimal places, e.g. 45,000.) AM-2 FM-9 $ 310000 $ Overhead allocated to each product 465000 (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 15.5 $ 77.5 Overhead cost per unit e Textbook and Media Attempts: 1 of 15 used (b) Assume that Swifty has identified three activity cost pools. Cost Pool Assembly Setup Packaging $600,000 36,000 630,000 Cost Driver Direct labor hours Number of setups (1 per batch) 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. 45,000.) 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