Bass Boss Manufacturing Company manufactures two types of bass boats. Bass Boss provides the following data, pertinent to allocating its annual overhead cost of $485,000: Bass Boss Product Boss Hog Boss Bear Units per year 15,000 20,000 Machine hours/unit 3 5 Materials cost/unit $1,500 $2,000 Labor cost/unit $800 $1,000 Determine the overhead allocation rate if the allocation is made based on the cost driver of machine hours.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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Bass Boss Manufacturing Company manufactures two types of bass boats. Bass
Boss provides the following data, pertinent to allocating its annual overhead cost
of $485,000:
Bass Boss Product Boss Hog Boss Bear
Units per year
15,000
20,000
Machine hours/unit 3
5
Materials cost/unit $1,500
$2,000
Labor cost/unit
$800
$1,000
Determine the overhead allocation rate if the allocation is made based on the
cost driver of machine hours.
Transcribed Image Text:Bass Boss Manufacturing Company manufactures two types of bass boats. Bass Boss provides the following data, pertinent to allocating its annual overhead cost of $485,000: Bass Boss Product Boss Hog Boss Bear Units per year 15,000 20,000 Machine hours/unit 3 5 Materials cost/unit $1,500 $2,000 Labor cost/unit $800 $1,000 Determine the overhead allocation rate if the allocation is made based on the cost driver of machine hours.
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