Question

Yorba Company manufactures cuckoo clocks and uses an activity-based costing system to allocate overhead to its products. Each cuckoo clock consists of 6 separate parts totaling $80 in direct materials, $40 in direct labor and requires 1.5 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.34 per part Machining Machine hours $2.50 per machine hour Assembling Number of parts $0.56 per part Packaging Number of finished units $2.19 per finished unit Calculate the total overhead to be allocated to each cuckoo clock. Round your answer to 2 decimal places. Do not use S in your answer.

Answer 1

Correct answer-----------$17.34

Working

Cost assigned to Cuckoo clock
Activity name	Activity Rates	Activity	ABC Cost
	(A)	(B)	(A x B)
Material handling	$             1.34	6.00	$ 8.04
Machining	$             2.50	1.50	$ 3.75
Assembling	$             0.56	6.00	$ 3.36
Packaging	$             2.19	1.00	$ 2.19
Total Overheads assigned per unit	$ 17.34