Burgundy Corporation makes plastic and wooden picture frames. The company has assigned $107,000 in monthly manufacturing overhead costs to two cost pools as follows: $67,000 to power costs, and $40,000 to production set-up costs. Additional monthly data are provided below: Particulars Plastic Frames Wooden Frames Sales revenue $ 254,000 $ 179,000 Direct materials $ 101,000 $ 38,360 Direct labor $ 53,360 $ 92,720 Machine hours 107,420 7,580 Production runs 65 35 Units produced and sold 59,000 29,000 Power costs are allocated to products using machine hours as an activity base. Production set-up costs are allocated to products based on the number of production runs each product line requires. Allocate manufacturing overhead from the activity cost pools to each product line. 

Provide explanation on how you reach to the result. Extra Credit 

Which product line appears to be more profitable?

Answer rating: 100% (QA)

Allocating Manufacturing Overhead Costs to Product Lines Burgundy Corporation We need to allocate the manufacturing overhead costs from the two cost p... View the full answer