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Ellis Perry is an electronics components manufacturer. Information about the company's two products follows: table [ [ , , , ] , [ Units

Ellis Perry is an electronics components manufacturer. Information about the company's two products follows:
\table[[,,,],[Units produced,AM-2,FM-9,],[Direct labor hours required for production,15,000,2,000,],[Units per batch,15,000,14,000,],[Shipping weight per unit,3,000,50,]]
The company incurs $899,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.
Required
3. How much overhead will be allocated to each product using the traditional direct labor hours allocation base? What overhead cost per unit will be allocated to each product?
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. Assume that Ellis Perry has identified three activity cost pools.
\table[[Pool,Cost,],[Assembly,$638,000,Cost Driver],[Setup,121,500,Number of setups (1 per batch)],[Packaging,139,500,Weight]]
product?
Solve:
Overhead Rate
Number of units produced
\table[[32],[34],[35],[36],[37]]
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Pool
Assembly
Setup product?
Solve:
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