Question

Chan Company identified the following activities, costs, and activity drivers. The company manufactures two types of go- karts: Fast and Standard. Production volume is 10,000 units of the Fast model and 30,000 units of the Standard model.


Required
1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 100,000 budgeted direct labor hours.
2. Assign overhead costs to each model assuming the Fast model requires 25,000 direct labor hours and the Standard model requires 60,000 direct labor hours. What is the overhead cost per unit for eachmodel?


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  • CreatedNovember 29, 2013
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