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Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping
Vaughn is an electronics components manufacturer. Information about the company's two products follows: Units produced Direct labor hours required for production Units per batch Shipping weight per unit AM-2 FM-9 18,000 3,120 16,000 28,000 4,000 80 0.50 lbs. 4 lbs. The company incurs $1,312,438 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. (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 0 decimal places, e.g. 45,000.) 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 $ Assume that Vaughn has identified three activity cost pools. Pool Cost Cost Driver Assembly $1,012,000 Direct labor hours Setup 115,710 Number of setups (1 per batch) Packaging 184,728 Weight (i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,000.) AM-2 FM-9 Total allocated overhead $ (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 $ Click if you would like to Show Work for this question: Open Show Work
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