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Swifty is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping
Swifty is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 25,000 12,500 5,000 0.50 lbs. FM-9 4,000 15,000 400 10 lbs. The company incurs $797,500 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (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 0 decimal places, e.g. 45,286.) AM-2 FM-9 $ Overhead allocated to each product $ 362500 $ $ 435000 (ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, eg. 15.25.) AM-2 FM-9 $ 14.50 $ $ Overhead cost per unit 108.75 Pool Assembly Setup Packaging Cost $550,000 37,500 210,000 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. 45,286.) AM-2 FM-9 $ 552255.64 $ $ Total allocated overhead 147244.36 (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 $ $ 22.09 $ 36.81 Overhead cost per unit
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