Assignment Week 4 - 272,000 16,000 DLHs $34 per DLH.

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Assignment Week 4 Vaishnavi Reddy. Bommi Problem 8-7 – page 340 Activity Cost Pool (a) Estimated Overhead Cost (b) Expected Activity  (a) / (b) Activity Rate Machine Set-up $72,000 per direct labor-hour 400 Setups $ 180 Special Processing $200,000 per customer order 5000 MHs $ 40 General Factory $816,000 per product testing hour 24,000 DLHs $ 34 2. The unit costs can be computed as follows, starting with the  computation of the manufacturing overhead: Hubs Sprockets Machine setups: 100 setups × $180 per setup. ............................... $ 18,000 300 setups × $180 per setup. .............................. $ 54,000 Special processing: 5,000 MHs × $40 per MH. .................................. 200,000 0 MH × $40 per MH. ........................................... - General factory: 8,000 DLHs × $34 per DLH. ...............................
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Unformatted text preview: 272,000 16,000 DLHs $34 per DLH. ............................. 544,000 Total overhead cost (a). ........................................... $490,000 $598,000 Number of units produced (b). ................................ 10,000 40,000 Overhead cost per unit (a) (b). ............................. $49.00 $14.95 Hubs Sprockets Direct materials. ...................................................... $32.00 $18.00 Direct labor: 0.80 DLHs $15 per DLH. ................................. 12.00 0.40 DLHs $15 per DLH. ................................. 6.00 Manufacturing overhead (see above). ..................... 49.00 14.95 Unit cost. ................................................................. $93.00 $38.95...
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Assignment Week 4 - 272,000 16,000 DLHs $34 per DLH.

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