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Vaughn makes two products. Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and

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Vaughn makes two products. Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implernented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $2.280,000 Assembly Fabrication Setups Bonding Rate $0.80 per direct labor hour $15 per machine hour $20 per batch $66,000 direct to Complex Only the Complex product requires bonding, so all the counts of bonding should be allocated to complex. The following data relate to both products Units produced Direct labor hours Machine hours Batches Simple 100.000 230,000 80,000 1.500 Complex 40.000 150,000 40,000 4,000 Using the traditional method of allocating overhead costs allocate overhead cost to the products, 4 show that the overhead assigned to each product sums to the total company overhead determine the overhead cost per unit for each product (Round overhead rate and overhead por unit answers to 2 decimal places, e. 15.25.) Simple Complex Total Machine hours Overhead rate 20 $ Total overhead to product $ 000 00000 S 2400000 Simple Complex Total voted to product 10 B00000 Number of units produced Overhead per unit

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