The current system at ACE allocates manufacturing overhead to products based on direct labor costs. For the most recent year, whi s representative, manufacturing overhead totaled $2,023,500 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows: Direct materials Direct labor Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Personal $ 1,444,200 1,029,000 Required: Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as ollows: Commercial $ 609,750 657,250 Costs Assigned $ 967,500 816,000 240,000 $ 2,023,500 Total $ 2,053,950 1,686,250 Activity Level Personal 50 15 150 Commercial 25 25 50 Total 75 40 200 How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total

The current system at ACE allocates manufacturing overhead to products based on direct labor costs. For the most recent year, whi s representative, manufacturing overhead totaled $2,023,500 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows: Direct materials Direct labor Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Personal $ 1,444,200 1,029,000 Required: Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as ollows: Commercial $ 609,750 657,250 Costs Assigned $ 967,500 816,000 240,000 $ 2,023,500 Total $ 2,053,950 1,686,250 Activity Level Personal 50 15 150 Commercial 25 25 50 Total 75 40 200 How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total

Name: The current system at ACE allocates manufacturing overhead to product
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Description: The current system at ACE allocates manufacturing overhead to products based on direct labor costs. For the most recent year, whichis representative, manufacturing overhead totaled $2,023,500 based on production of 30,000 Personal grinders and 10,00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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