Question

bCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDc AaBbCcDdEe AaBbCcDdEe Hormal No Spacing Heading 1 Title Subtitle Subtle Emph... Styles Pane 4. Blader Co. manufactures a variety of electric razors used by both men and women. The company's plant is partially automated. The company uses an activity-based cost system. Listed below is cost driver information used in the product-costing system: Budgeted Overhead Cost $202,500 Budgeted Cost Driver Cost Level Driver 25,000 Machine hours Overhead Cost pool Machine depreciation/ Maintenance Factory depreciation/ Utilities/insurance Product design Material purchasing/storing 154,940 25,400 Machine hours 665,720 1,293,760 35,600 Hours in design 124,400 Raw materials Two current product orders had the following requirements: Men's Razors 26,000 40 980 Women's Razor 30,000 Units produced and sold Direct labor hours Pounds of raw materials Hours in design Machine hours 50 1,120 Required: a. Utilizing ABC, how much overhead is assigned to the order for men's razors? b. Utilizing ABC, how much overhead is assigned to the order for women's razors? + 100 %

Answer 1

a)	overhead assigned to Men's Razors
	Machine Depreciation			202,500	/	25000	*	85	=	688.5
	Factpry depreciation			154,940	/	25400	*	85	=	518.5
	product design			665,720	/	35600	*	26	=	486.2
	material purchasing			1,293,760	/	124400	*	980	=	10192
	overhead assigned to Men's Razor									11885.2	answer
b)	overhead assigned to Women's Razors
	Machine Depreciation			202,500	/	25000	*	60	=	486
	Factpry depreciation			154,940	/	25400	*	60	=	366
	product design			665,720	/	35600	*	28	=	523.6
	material purchasing			1,293,760	/	124400	*	1120	=	11648
	overhead assigned to   Women's Razor									13023.6	answer