Crane is an electronics components manufacturer. Information about the company's two products follows: AM-2 &FM-9 Units produced: AM-2 = 18,000 /...
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# Crane is an electronics components manufacturer. Information about the company's two products follows: />AM-2 & FM-9 Units produced: AM-2 = 18,000 / FM-9 = 600 Direct labor hours required for production: AM-2 = 24,000 / FM-9 = 19,000 Units per batch: AM-2 = 4,000 / FM-9 = 90 Shipping weight per unit: AM-2 = 0.50lbs. / FM-9 = 4lbs.The company incurs \$1,412,655 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.)    Overhead allocated to each productAM-2 = \$788,400FM-9 = \$624,150(ii)What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.)    Overhead cost per unit\$AM-2 = \$43.80FM-9 = \$173.38Assume that Crane has identified three activity cost pools.Pool             Cost              Cost DriverAssembly     \$1,075,000     Direct labor hoursSetup           \$122,375        Number of setups (1 per batch)Packaging    \$215,280        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-2FM-9Total allocated overheadAM-2 = FM-9 = (ii)What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.)AM-2FM-9Overhead cost per unitAM-2 =FM-9 =

Traditional Method (i). Overhead allocated to each product: AM-2 =\$788,400 FM-9=\$624,150 (ii). The... View the full answer

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