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Vaughn is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 25,000 5,000 Direct labor hours required for production
Vaughn is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 25,000 5,000 Direct labor hours required for production 12,500 15,000 Units per batch 5,000 500 Shipping weight per unit 0.50 lbs. 10 lbs. The company incurs $935,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (a) X Your answer is incorrect. (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 decimal places, eg. 45,286.) AM-2 FM-9 $ Overhead allocated to each product (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 $ Overhead cost per unit
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