Vladof Overalls has two product lines: machine-made overalls and hand-made tech clothing. The company assigns 80,000 in manufacturing overhead costs to two cost pools: power costs and inspection costs. Of this amount, the power cost pool has been assigned 32,000 and the inspection cost pool has been assigned 48,000. Additional information about each product line is shown below.

P&L net sales 48000 240,0 16000 160,0 CoGS DM purchases DL costs 120,0 96,0 Machine h 96000 4000 Square ft 1200 800 Material PO 150 100 QA inspection h 2000 500 Machine-made Hand-made a) Allocate the manufacturing overhead from the activity cost pools to each product line. Use what you believe are the most significant cost drivers from the information provided. b) Compute the cost per unit of machine-made costumes and hand-made costumes. c) On a per-unit basis, which product line appears to be the most profitable? Explain.

Vladof Overalls has two product lines: machine-made overalls and hand-made tech clothing. The company assigns 80,000 in manufacturing overhead costs to two cost pools: power costs and inspection costs. Of this amount, the power cost pool has been assigned 32,000 and the inspection cost pool has been assigned 48,000. Additional information about each product line is shown below. a) Allocate the manufacturing overhead from the activity cost pools to each product line. Use what you believe are the most significant cost drivers from the information provided. b) Compute the cost per unit of machine-made costumes and hand-made costumes. c) On a per-unit basis, which product line appears to be the most profitable? Explain