Trying to find the activity based costing of the following for the allocated overhead Your answer is incorrect.Assume that Crane has identified three activity cost pools.PoolCostCost DriverAssembly$500,000Direct labor hoursSetup36,000Number of setups (1 per batch)Packaging250,000Weight(i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unitrates to 2 decimal places, e.g. 3.54 and final answers to 0 decimal places, e.g. 45,286.)AM-2FM-9Total allocated overhead(ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.)AM-2FM-9$Overhead cost per unit%24%24%24%24 Crane is an electronics components manufacturer. Information about the company's two products follows:AM-2FM-9Units produced20,0004,000Direct labor hours required for production10,00015,000Units per batch4,000400Shipping weight per unit0.50 Ibs.10 Ibs.The company incurs $786,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Cost Drivers: Total Direct Labor Hours (10,000 + 15,000) 25,000 Total Setups batch AM-2…

Crane is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 20,000 4,000 Direct labor hours required for production 10,000 15,000 Units per batch 4,000 400 Shipping weight per unit 0.50 Ibs. 10 Ibs. The company incurs $786,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Crane is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 20,000 4,000 Direct labor hours required for production 10,000 15,000 Units per batch 4,000 400 Shipping weight per unit 0.50 Ibs. 10 Ibs. The company incurs $786,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...

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Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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