Question

Use the following information to answer Questions #5 and #6 12 30 Product A Units produced and sold Product B 30,000 Machine hours required per unit 12.000 23 Receiving orders per product line 50 150 Production orders per product line 12 18 Production runs 8 Inspections 20 Total budgeted machine hours are 100,000. The budgeted overhead costs are as shown below. 96.000 Machine hat Receiving costs $450,000 used Engineering costs 300,000 Machine setup costs 25,000 Inspection costs 200,000 Total budgeted overhead costs $975,000 5) Using activity-based costing, Atmel's per unit overhead cost allocation of receiving costs for Product A is a) $3.75 b) $10.75 c) $19.50 d) $28.13 6) Atmel's cost driver for engineering costs is the number of production orders per product line. Using activity-based costing, the engineering cost per unit for Product B is a) $4.00 b) $10.00 c) $15.00 d) $29.25

Please show your work

Answer 1

	5)	allocated
		(450,000/200)*50
		112500
		per unit allocated=		112500/30,000
				3.75	answer
		answer)	option a
	6)	allocated to B
		300,000/30*18
		180000
		per unit allocated =		180000/12000
				15	answer
		answer - option c