The Gabriel James Company manufacturers two types of boats. The company provides the following data pertinent to allocating its annual overhead cost of $460,000.
The Gabriel James Company manufacturers two types of boats. The company provides the following data pertinent to allocating its annual overhead cost of $460,000. Units per year Machine hours/unit Materials cost/unit Labor cost/unit Sleek Boat 5,000 2.5 $2,500 $800 Jet Boat 7,000 5.0 $1,500 $200 Assume the cost driver is total materials cost. What is the amount of overhead cost allocated to the Jet Boat?
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Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
471467855, 978-0471467854
