The question relates to the Caress of Steel Machine case

Peart proposed a revised cost system where they first identify material-related overhead (the cost of receiving and handling material), and allocate that cost to each product line based on the cost of material. Second, he suggested that they measure set-up labor, remove it form total overhead, and assign it to each product line. Finally, he suggested that they substitute machine hours for labor dollars as the basis for allocating the remaining factory overhead.

What is the total cost to produce a "Guitar" under this system?

Alex, suggested an alternative method where they allocate overhead costs as a function of transactions. Based on the dataprovided inExhibit 3, and the suggestion to "allocate overhead costs as a function of transactions related to each overhead cost," what is the cost of Receiving per transaction?

Alex, suggested an alternative method where they allocate overhead costs as a function of transactions. They could then allocate costs unrelated to transactions like

Engineering based on the engineering workload, and maintenance and depreciation based

on machine hours. Based on the data provided in Exhibit 3, what is the cost of Maintenance and Depreciation per machine hour?