Apex Manufacturing Ltd. expects to produce 20,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are provided below: Activities Unit Level Batch Product Level Level Facility Level Cost $30,000 $45,000 $10,000 $150,000 Cost 2,500 labor 200 setups % of use 20,000 units Driver hrs Production of 1,200 units of a new electric drill required 500 labor hours, 15 setups, and consumed 40% of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours?

Apex Manufacturing Ltd. expects to produce 20,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are provided below: Activities Unit Level Batch Product Level Level Facility Level Cost $30,000 $45,000 $10,000 $150,000 Cost 2,500 labor 200 setups % of use 20,000 units Driver hrs Production of 1,200 units of a new electric drill required 500 labor hours, 15 setups, and consumed 40% of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter12: Integer Linear Optimization_models

Section: Chapter Questions

Problem 6P: Hart Manufacturing makes three products. Each product requires manufacturing operations in three...

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