Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: Total overhead$64,400Cost drivers Number of labor hours2,700Number of machine hours40,000 Required:1. Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 62 percent of the labor hours and Product B requires 38 percent.2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 17,800 machine hours and Product B consumes 22,200. Required 1Required 2Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine theamount of overhead assigned to each product line if Product A requires 62 percent of the labor hours and Product B requires38 percent. (Round your final answers to nearest whole dollar amount.)OverheadAssignedProduct AProduct B Required 1Required 2Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overheadassigned to each product line if Product A consumes 17,800 machine hours and Product B consumes 22,200. (Roundintermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount.)OverheadAssignedProduct AProduct B

Lets understand the basics. Overheads are the indirect cost which are not directly allocable to any…

Answered: Bluefield Corp. has two product lines,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers:


Total overhead	$64,400
Cost drivers
Number of labor hours	2,700
Number of machine hours	40,000

Required:
1. Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 62 percent of the labor hours and Product B requires 38 percent.

2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 17,800 machine hours and Product B consumes 22,200.

Required 1
Required 2
Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the
amount of overhead assigned to each product line if Product A requires 62 percent of the labor hours and Product B requires
38 percent. (Round your final answers to nearest whole dollar amount.)
Overhead
Assigned
Product A
Product B

Required 1
Required 2
Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead
assigned to each product line if Product A consumes 17,800 machine hours and Product B consumes 22,200. (Round
intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount.)
Overhead
Assigned
Product A
Product B

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