Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system: Budgeted Overhead Budgeted Cost Driver Overhead Cost Pool Cost Level Cost Driver $ 197,176 Machinery depreciation/maintenance Factory depreciation/utilities/insurance Product design Material handling 31,500 31,500 43,120 217,000 Machine hours 140,840 Machine hours Hours in design 676,032 1,295,728 Pounds of raw materials In addition, Sharp Company expects to spend $563,360 for 8,048 direct labor-hours. Two current product orders had the following requirements: Men's Razors Women's Razors Units produced and sold 18,000 25,000 Direct labor hours 30 40 Pounds of raw materials 581 471 Hours in design 20 23 Machine hours 64 49 What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor dollars?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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$1,470.00.
$10,496.00.
$291.10.
$8,610.00.
$18,368.00.
Transcribed Image Text:Multiple Choice $1,470.00. $10,496.00. $291.10. $8,610.00. $18,368.00.
Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system:
Budgeted Overhead Budgeted Cost Driver
Overhead Cost Pool
Cost
Level
Cost Driver
Machinery depreciation/maintenance
Factory depreciation/utilities/insurance
Product design
Material handling
$ 197,176
140,840
676,032
1,295,728
31,500
31,500
43,120
Machine hours
Machine hours
Hours in design
217,000
Pounds of raw materials
In addition, Sharp Company expects to spend $563,360 for 8,048 direct labor-hours. Two current product orders had the following requirements:
Men's Razors
Women's Razors
Units produced and sold
18,000
25,000
Direct labor hours
30
40
Pounds of raw materials
581
471
Hours in design
20
23
Machine hours
64
49
What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor dollars?
Transcribed Image Text:Sharp Company manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system: Budgeted Overhead Budgeted Cost Driver Overhead Cost Pool Cost Level Cost Driver Machinery depreciation/maintenance Factory depreciation/utilities/insurance Product design Material handling $ 197,176 140,840 676,032 1,295,728 31,500 31,500 43,120 Machine hours Machine hours Hours in design 217,000 Pounds of raw materials In addition, Sharp Company expects to spend $563,360 for 8,048 direct labor-hours. Two current product orders had the following requirements: Men's Razors Women's Razors Units produced and sold 18,000 25,000 Direct labor hours 30 40 Pounds of raw materials 581 471 Hours in design 20 23 Machine hours 64 49 What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor dollars?
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