Combate Corp. manufactures ice creams: magnum and cornetto. The following are the information for two products.   Setups Inspections Assembly Magnum - 10,000 units 6 3 2  Cornetto - 40,000 units 4 6 4   Activity Pool Activity Base Budgeted Amount Setups 400,000  1,000,000 Inspections  200,000    600,000 Assembly (DLH)   500,000 2,600,000   a. What is the total factory overhead to be charged to each unit of Magnum? b. What is the total factory overhead to be charged to each unit of Cornetto? c. What is the total factory overhead charged to Cornetto?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 17E
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Combate Corp. manufactures ice creams: magnum and cornetto. The following are the information for two products.

  Setups Inspections Assembly
Magnum - 10,000 units 6 3
Cornetto - 40,000 units 4 6 4

 

Activity Pool Activity Base Budgeted Amount
Setups 400,000  1,000,000
Inspections  200,000    600,000
Assembly (DLH)   500,000 2,600,000

 

a. What is the total factory overhead to be charged to each unit of Magnum?

b. What is the total factory overhead to be charged to each unit of Cornetto?

c. What is the total factory overhead charged to Cornetto?

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