Bluefield Corporation has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: Total overhead Cost drivers Number of labor hours Number of machine hours Required: 1. Suppose Bluefield Corporation 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 64 percent of the labor hours and Product B requires 36 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 requires 17,500 machine hours and Product B requires 32,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 79,000 2,200 50,000 Suppose Bluefield Corporation 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 64 percent of the labor hours and Product B requires 36 percent. Note: Round your final answers to nearest whole dollar amount. Product A Product B Overhead Assigned < Required 1 Required 2 > Show less A
Bluefield Corporation has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: Total overhead Cost drivers Number of labor hours Number of machine hours Required: 1. Suppose Bluefield Corporation 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 64 percent of the labor hours and Product B requires 36 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 requires 17,500 machine hours and Product B requires 32,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 79,000 2,200 50,000 Suppose Bluefield Corporation 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 64 percent of the labor hours and Product B requires 36 percent. Note: Round your final answers to nearest whole dollar amount. Product A Product B Overhead Assigned < Required 1 Required 2 > Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Bluefield Corporation has two product lines, A and B. Bluefield has identified the following information about its overhead and
potential cost drivers:
Total overhead
Cost drivers
Number of labor hours
Number of machine hours
Required:
1. Suppose Bluefield Corporation 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 64 percent of the labor hours and Product B requires 36
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 requires 17,500 machine hours and Product B requires 32,500.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
$ 79,000
2,200
50,000
Suppose Bluefield Corporation 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 64 percent of the labor hours and Product B requires
36 percent.
Note: Round your final answers to nearest whole dollar amount.
Product A
Product B
Overhead
Assigned
< Required 1
Required 2 >
Show less A
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Step 1: Introduce to predetermined overhead rate
VIEWStep 2: Working for direct labor hours required for product A and product B
VIEWStep 3: Working for overhead assigned to product using labor hours as cost driver
VIEWStep 4: Working for overhead assigned to product using machine hours as cost driver
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