Macy Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is as follows:

	Number of units	Machine hours (MH)	Direct labor hours (DLH)
Bear	2,000	5,000 MH	700 DLH
Puppy	4,000	3,000 MH	1,000 DLH
Bunny	6,000	2,000 MH	2,300 DLH

The total machine running costs incurred during the year is $150,000. The allocation of machine running costs to these three items is based on machine hours.

How much machine running costs are expected to be allocated to Bunny during the year?

Answer rating: 100% (QA)

To calculate the machine running costs allocated to Bunny during the year we need to allocate the to... View the full answer