Question

Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential co drivers: $84,660 Total overhead Cost drivers Number of labor hours Number of machine hours 2,000 51,000 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 76 percent of the labor hours and Product B requires 24 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 16,900 machine hours and Product B consumes 34,100. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 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 16,900 machine hours and Product B consumes 34,100. (Round intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount.)

I also entered 33293 for A and 66980 for B, not sure if my formula is wrong or if its a rounding error

Answer 1

1. A = 2000x 76% - 1520 HIS B. 2000 X 24% 480 His No. of labor hours assigned Amont of overhead assigned - $84660X1920 2000 -$64342 = $84660x480 2000 $20318 B В 189.00 Hrs 34 (60 Hrs No. of machine Hour assigned Amoud of ovet head assigned -884660x16900 Slooo $28054 $ $84460X 34100 Slood $56606 11