Question: Overhead Costs are allocated to units based on two different labor-based activity bases: Welding and Fabrication. Overhead costs applied via welding are allocated to all

Overhead Costs are allocated to units based on two different labor-based activity bases: Welding and Fabrication. Overhead costs applied via welding are allocated to all units based on total per hour labor costs, while those of fabrication are allocated to all units based on the number of units assembled for the day. Estimate the total overhead costs for each product again when applying overheads costs using the following allocation methods.

Expected Production Units:

Bolts 150,000 Units

Router Bits 10,000 Units

Benchtops 1,200 Units

Aluminum Framing 470 Units

Overhead Costs are allocated to units based on two different labor-based activity

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