Answer the questions given below. Question #3 Overhead Allocation Question #3 The lead accountant has compiled the

Answer the questions given below.

 

Transcribed Image Text:

Question #3 Overhead Allocation Question #3 The lead accountant has compiled the following data in preparation for allocating overhead to three cost drivers. Overhead Costs Utilities Admin/MGMT Factory Costs $50,000 Utilities (phone, electric, water, gas, etc.) $150,000 CEO, VPs, Supervisors, Secretary staff costs $500,000 Building lease & equipment $700,000 (10) A. Allocate the $700,000 of monthly overhead costs to the following three cost drivers: 1) Units Produced 2) Direct Labor Hours 3) Raw Material Costs to determine the final product cost per unit (which includes Direct Labor, Raw Materials, and Overhead) Widget-1 Widget-2 Widget-3 Labor Hrs Per Widget 3 6 12 Direct Labor Cost per Widget Std Labor Rate (S/hr): $25.00 $75.00 $150.00 $300.00 Question #3 Overhead Allocation Question #3 The lead accountant has compiled the following data in preparation for allocating overhead to three cost drivers. Overhead Costs Utilities Admin/MGMT Factory Costs $50,000 Utilities (phone, electric, water, gas, etc.) $150,000 CEO, VPs, Supervisors, Secretary staff costs $500,000 Building lease & equipment $700,000 (10) A. Allocate the $700,000 of monthly overhead costs to the following three cost drivers: 1) Units Produced 2) Direct Labor Hours 3) Raw Material Costs to determine the final product cost per unit (which includes Direct Labor, Raw Materials, and Overhead) Widget-1 Widget-2 Widget-3 Labor Hrs Per Widget 3 6 12 Direct Labor Cost per Widget Std Labor Rate (S/hr): $25.00 $75.00 $150.00 $300.00

Answer rating: 100% (QA)

Answer Breakdown 10 A Overhead Allocation We cannot allocate the total overhead directly to get fina... View the full answer