Maurice Tutor

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Category > Accounting Posted 24 Jul 2017 My Price 7.00

(ABC) Illiad Inc

(ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The company’s products and related statistics follow.

 

Product A

Product B

Direct material in pounds

139,500

190,500

Direct labor hours

30,000

37,500

Machine hours

52,500

22,500

Number of setups

430

860

Number of units produced

15,000

7,500

Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hour costs $12.

a. Assume that Illiad Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit.

b. Assume that Illiad Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit.

c. Assume that Illiad Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products:

Cost Pool

Cost Driver

Cost

Utilities

# of machine hours

$ 750,000

Setup

# of setups

193,500

Material handling

# of pounds of material

1,419,000

Determine the total cost for each product and the cost per unit.

Answers

(5)
Status NEW Posted 24 Jul 2017 12:07 AM My Price 7.00

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