23 of 40(1 department to identify the primary production activitses and their co

Question

23 of 40(1 department to identify the primary production activitses and their cost drivers which are as follows Allocation Rate $7.00 per part Cost driver Material handing Assembly Inspection Labor hours Time at inspection station The ourmont tradtional cost method allocates overthead based on diredt manufacturing labor hours uning a rate of $240.00 per labor hour what are to indirect manufactring remote cotrol asuming an o tity-based-oostrg od is used and a bath ofa remote O A $6.00 per remote contr 0 · $37 00 per romote O D $38.50 per remote control

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

Overhead allocation for one batch is calculated in the following table

So, overhead per unit

= Total allocated overhead per batch / Number of units per batch

= $1,540 / 40

= $38.50 per remote control

So, option D is the correct option

Calculations A B C = A x B Particulars Allocation rate Required per batch Cost allocation per batch Material handling 7 200 1400 Assembly 20 5 100 Inspection 10 4 40 Total 1540

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