UW My UIW Courses Organizations Student Resources UIW Web Library Online Cost Accounting 01 Fa 20 ACC7331301 Fa 20 Week 5: Chapter 4 Chapter 4 Resources (myBusiness Business Course Return to course ABC; product profitability Outerwear Inc. is concerned about the profitability of its regular gloves. Company managers are considering producing only the top-quality, fleece lined, gloves. The company is currently assigning the $2,400,000 of overhead costs to both types of gloves based on machine hours. Of the overhead, $960,000 is utilities related and the remainder is primarily related to quality control inspectors' salaries. The following information about the products is also available. Regular Fleece-Lined Number produced 2,000,000 1,400,000 170,000 30,000 Inspection hours 10,000 50,000 $7,680,000 $6.720,000 $6,000,000 $5,280,000 Machine hours Revenues Direct costs a. Determine the total overhead cost assigned to each type of gloves using the current allocation system. Total OH assigned to regular gloves: $ Total OH assigned to fleece-lined gloves: $ b. Determine the total overhead cost assigned to each type of gloves if more appropriate cost drivers were used. Total OH assigned to regular gloves: $ Total OH assigned to fleece-lined gloves: $ MacBo My UIW Courses Organizations Student Resources UIW Web Library Cost Accounting 01 Fa 20 ACC13313_01_fa_20 Week 5: Chapter 4 Chapter 4 Resources (myBusin BusinessCourse * Return to course Total OH assigned to fleece-lined gloves: $ b. Determine the total overhead cost assigned to each type of gloves if more appropriate cost drivers were used Total OH assigned to regular gloves: $ Total OH assigned to fleece-lined gloves: $ c. Determine the profit before tax for regular and fleece-lined gloves based on the overhead cost assignment in part (b). Profit before tax for regular gloves: $ Profit before tax for fleece-lined gloves: $ Previous Save Answers MacBc