Bamboo Company produces two products, blinds and curtains. They are produced in two parts, namely Manufacturing and
Question:
Bamboo Company produces two products, blinds and curtains. They are produced in two parts, namely Manufacturing and Assembly. Data pertaining to products and departments are listed below.
Product | number units | Working Hours | Machine Hours per unit |
jalousie | 1.000 | 4 | 5 |
curtains | 2.000 | 2 | 8 |
All machine hours occur in the Manufacturing department with an estimated overhead of $84,000. All working hours are performed in the Assembly department with an estimated total overhead of $72,000.
Bamboo Company uses a single overhead rate to apply all overheads based on working hours. What is the overhead cost per unit for roller shutters?
(Must demonstrate all supporting work )
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young