QUESTION 10 Lawn and Order Company manufactures industrial sprinklers and uses an activity-based costing system to allocate overhead to its products. Each sprinkler consists of 6 separate parts totaling $3 in direct materials, $2 in direct labor and requires 1 hour of machine time to produce. Additional information follows Overhead Cost Pools Pre-determined Overhead Rate Materials handling Number of parts $0.40 per part Machining Machine hours $1.50 per machine hour Assembling Inspecting Number of parts $0.40 per part Number of finished units $0.30 per finished unit Determine the amount of overhead allocated to each sprinkler. Round your answer to 2 decimal places
QUESTION 10 Lawn and Order Company manufactures industrial sprinklers and uses an activity-based costing system to allocate overhead to its products. Each sprinkler consists of 6 separate parts totaling $3 in direct materials, $2 in direct labor and requires 1 hour of machine time to produce. Additional information follows Overhead Cost Pools Pre-determined Overhead Rate Materials handling Number of parts $0.40 per part Machining Machine hours $1.50 per machine hour Assembling Inspecting Number of parts $0.40 per part Number of finished units $0.30 per finished unit Determine the amount of overhead allocated to each sprinkler. Round your answer to 2 decimal places
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![QUESTION 10
Lawn and Order Company manufactures industrial sprinklers and uses an activity-based costing system
to allocate overhead to its products. Each sprinkler consists of 6 separate parts totaling $3 in direct
materials, $2 in direct labor and requires 1 hour of machine time to produce. Additional information
follows
Overhead Cost Pools
Pre-determined Overhead Rate
Materials handling
Number of parts $0.40 per part
Machining Machine hours
$1.50 per machine hour
Assembling
Inspecting
Number of parts $0.40 per part
Number of finished units $0.30 per finished unit
Determine the amount of overhead allocated to each sprìnkler. Round your answer to 2 decimal places](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14507f8b-d82c-4ce9-b933-f72d266761a2%2F8e5c6ac0-21a1-4ff5-b62a-73eed8289bd6%2F0tknqd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 10
Lawn and Order Company manufactures industrial sprinklers and uses an activity-based costing system
to allocate overhead to its products. Each sprinkler consists of 6 separate parts totaling $3 in direct
materials, $2 in direct labor and requires 1 hour of machine time to produce. Additional information
follows
Overhead Cost Pools
Pre-determined Overhead Rate
Materials handling
Number of parts $0.40 per part
Machining Machine hours
$1.50 per machine hour
Assembling
Inspecting
Number of parts $0.40 per part
Number of finished units $0.30 per finished unit
Determine the amount of overhead allocated to each sprìnkler. Round your answer to 2 decimal places
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