Question
Use the following statement: Product A Product B Total sales volume (units) 100 180 280 Revenue $12,000 $72,000 $84,000 COGS: direct materials $2,400 $4,800 $7,200
Use the following statement:
Product A | Product B | Total | |
sales volume (units) | 100 | 180 | 280 |
Revenue | $12,000 | $72,000 | $84,000 |
COGS: | |||
direct materials | $2,400 | $4,800 | $7,200 |
direct labor | $4,800 | $12,000 | $16,800 |
MOH | $50,400 | ||
Gross margin | $9,600 |
Required: (a) allocate the shared MOH ($50,400) among product A and product B, using direct labor dollars as the allocation base. overhead rate=$ per DL$ MOH allocated to A=$ MOH allocated to B=$ (b) using the allocated costs from (a), compute the gross margin for product A and product B. If you get a negative number, enter it with a minus sign, i.e., enter negative $1000 as -1000, not as ($1000) gross margin for A=$ gross margin for B=$ (c) allocate the shared MOH ($50,400) among product A and product B, using the number of units as the allocation base. overhead rate=$ per unit MOH allocated to A=$ MOH allocated to B=$ (d) using the allocated costs from (c), compute the gross margin for product A and product B. If you get a negative number, enter it with a minus sign, i.e., enter negative $1000 as -1000, not as ($1000) gross margin for A=$ gross margin for B=$
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