Can you please break down answer to question number 5. I posted this question on
ID: 2340598 • Letter: C
Question
Can you please break down answer to question number 5. I posted this question on the 22nd.
EXPLORER $390 $92 $51 CLIMBER $115 $53 $12 TOTAL COST COST DRIVER TOTALEXPLORERCLIMBER Sales price per unit Direct materials per unit Direct labor per unit Machine maintenance Batch setups Quality control $78,840 Machine hours $136,364 Setups $163,020 Number of $106,522bof 1,000 146 1650 350 60 975 352 650 86 675 612 inspections Technical support Total manufacturing 964 su t calls Estimated annual production 4000 units 9000 units $484,746 Estimated total manufacturing overhead: Estimated total machine hours: $484,746 1,000 1 Calculate the predetermined overhead rate using traditional volume-based costing 484.75 2 Calculate the total amount of overhead that would be assigned to each product line using traditional volume-based costing EXPLORER $169,661.10 CLIMBER 315,084.90Explanation / Answer
Activity Activity rate [overhead /activity ] Explorer Climber Machine maintenance 78840/1000 =78.84 350*78.84= 27594 650*78.84= 51246 setup 136364/146= 934 60*934= 56040 86*934= 80324 quality control 163020/1650= 98.8 975*98.8= 96330 675*98.8= 66690 Technical support 106522/964=110.5 352*110.5= 38896 612*110.5= 67626 Total cost allocation 218860 265866