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5e sol07-09 - dollars x ratio Sunscreen Lip Balm Total...

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Cost Management Hansen and Mowen Ex 7-9 Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns J and L. 1) Cost Driver Information and Allocation Ratios Sunscreen Lip Balm Total Power: Machine hours 8,000 24,000 32,000 Cost allocation ratios 25.0% 75.0% 100% General factory: Square feet 9,600 8,400 18,000 Cost allocation ratios 53.3% 46.7% 100% Purchasing Purchase orders 60 120 180 Cost allocation ratios 33.33% 66.67% 100% Enter the appropriate amounts in the shaded cells in columns F, H, J, and L. Allocation Producing Departments Direct Method
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Unformatted text preview: dollars x ratio Sunscreen Lip Balm Total Power: Sunscreen $120,000 x 25.00% $30,000 Lip Balm $120,000 x 75.00% $90,000 General factory: Sunscreen $540,000 x 53.33% 288,000 Lip Balm $540,000 x 46.67% 252,000 Purchasing Sunscreen $220,000 x 33.33% 73,333 Lip Balm $220,000 x 66.67% 146,667 Direct costs 137,500 222,500 Total $528,833 $711,167 $1,240,000 2) Departmental overhead rates Sunscreen Lip Balm Total overhead $528,833 $711,167 Machine hours 8,000 24,000 Overhead rate per machine hour $66.10 $29.63...
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