Shaver Co. 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:BudgetedBudgeted CostOverhead Cost PoolOverhead Cost Driver LevelCost Driver$ 168,640Machinery depreciation/maintenanceFactory depreciation/utilities/insuranceProduct design27,200 Machine hours127,84027,200 Machine hours554,40038,500 Hours in designMaterial handling1,078,000134,750 Pounds of raw materialsIn addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements:Men's RazorsWomen's RazorsUnits produced and soldDirect labor hours20,00026,0003040Pounds of raw materials860750Hours in design2023Machine hours6550Using ABC, how much batch-level overhead is assigned to the current order for Women's Razors based on pounds of raw materials?

Material handling is batch level overhead.

Shaver Co. 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 Budgeted Cost Overhead Cost Pool Overhead Cost Driver Level Cost Driver $ 168,640 Machinery depreciation/maintenance Factory depreciation/utilities/insurance Product design Material handling 127,840 554,400 1,078,000 27,200 Machine hours 27,200 Machine hours 38,500 Hours in design 134,750 Pounds of raw materials In addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements: Men's Razors Women's Razors Units produced and sold 20,000 26,000 Direct labor hours 30 40 Pounds of raw materials 860 750 Hours in design 20 23 Machine hours 65 50 Using ABC, how much batch-level overhead is assigned to the current order for Women's Razors based on pounds of raw materials?

Shaver Co. 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 Budgeted Cost Overhead Cost Pool Overhead Cost Driver Level Cost Driver $ 168,640 Machinery depreciation/maintenance Factory depreciation/utilities/insurance Product design Material handling 127,840 554,400 1,078,000 27,200 Machine hours 27,200 Machine hours 38,500 Hours in design 134,750 Pounds of raw materials In addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements: Men's Razors Women's Razors Units produced and sold 20,000 26,000 Direct labor hours 30 40 Pounds of raw materials 860 750 Hours in design 20 23 Machine hours 65 50 Using ABC, how much batch-level overhead is assigned to the current order for Women's Razors based on pounds of raw materials?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...

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