Question

A Pre-Built Problems Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: Total overhead Cost drivers Number of labor hours Number of machine hours $70, 400 1,800 44,000 Required: 1. Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 61 percent of the labor hours and Product B requires 39 percent. 2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 17,500 machine hours and Product B consumes 26,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose Bluefileld Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 61 percent of the labor hours and Product B requires 39 percent. (Round your final answers to nearest whole dollar amount.) Overhead Assigned Product A Product B Raqeired Required 2 >

Answer 1

Answer 1

Total Overhead $70400

Labour Hours allocations Amount Allocated

A 61% $42944

B 39% $27456

Answer 2 using Machine Hour as cost driver

Total overhead $ 70400

Machine Hours Amount Allocated

product A 17500 $28000

Product B 26500. $ 42400