What is the total overhead that is allocated to products? Recall that "Caress of Steel includes the Set-up labor cost as overhead which is then added to the other manufacturing overhead shown in Exhibit 2." (Please provide your answer as a number only (do not include $). Total Setup-Labor Costs: 300 hours x $16 = $4,800 $680,000 + $4,800 = $684,800

  

 

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Product Lines Monthly production Monthly shipments Material and Labor Costs Material Exhibit 2: Monthly Production and Cost Summary Guitars Bass Guitar Drum Kits 300 units 500 units 200 units 1 runs 300 units 1 shipments 7 shipments 5 runs 500 units 10 runs 200 units 22 shipments Monthly Total 6 components 4 components 10 components 3 @ $20 = $60 3 @ $50 = $150 2 @ $20 = $40 2 @ $40 = $80 $210 $120 4 @ $10 = $40 5 @ $6 = $30 1 @ $240 = $240 $310 $185,000 Total Labor ($16 per hour) Set-up Labor 10 hours per production run 10 hours per production run 24 hours per production run Direct Labor 25. hours per unit 50. hours per unit Machine Hours 10. hours per unit 10. hours per unit 40. hours per unit 5. hours per unit Manufacturing Overhead Receiving $20,000 Materials handling $200,000 Engineering $100,000 Packing and $60,000 Shipping Maintenance $30,000 Machine $270,000 Depreciation (10 year life) Total $680,000 300 hours 40,500 hours 9,000 hours Product Lines Monthly production Monthly shipments Material and Labor Costs Material Exhibit 2: Monthly Production and Cost Summary Guitars Bass Guitar Drum Kits 300 units 500 units 200 units 1 runs 300 units 1 shipments 7 shipments 5 runs 500 units 10 runs 200 units 22 shipments Monthly Total 6 components 4 components 10 components 3 @ $20 = $60 3 @ $50 = $150 2 @ $20 = $40 2 @ $40 = $80 $210 $120 4 @ $10 = $40 5 @ $6 = $30 1 @ $240 = $240 $310 $185,000 Total Labor ($16 per hour) Set-up Labor 10 hours per production run 10 hours per production run 24 hours per production run Direct Labor 25. hours per unit 50. hours per unit Machine Hours 10. hours per unit 10. hours per unit 40. hours per unit 5. hours per unit Manufacturing Overhead Receiving $20,000 Materials handling $200,000 Engineering $100,000 Packing and $60,000 Shipping Maintenance $30,000 Machine $270,000 Depreciation (10 year life) Total $680,000 300 hours 40,500 hours 9,000 hours

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