Check my work 4 Hi-Tek Manufacturing, Inc., makes two types of industrial compon

Question

Check my work 4 Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown 50 points Hi-Tek Manufacturing Inc Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss 1,708,000 1,250,526 457,474 550,000 eBook $(92,526) Print References Hi-Tek produced and sold 60,200 units of 8300 at a price of $20 per unit and 12,600 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: B300 T500 Total Direct materials Direct labor Manufacturing overhead Cost of goods sold 400,800 162,800 563,600 163,100 523,826 1,250,526 120,300 42,800

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Overhead Allocation - Traditional Costing System Particulars B300 T500 Total Estimated annual Production (In units) 60200 12600 Direct Labor Cost 120300 42800 163100 Overhead Cost Allocation basis direct labour dollar (Overhead / Total direct labor dollar * Labor dollar of model) $386,365.84 $137,460.16 $523,826.00 Manufacturing overhead cost per unit (Allocated Overhead / Nos of units) $6.42 $10.91

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