PA5. LO 6.3 Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: Estimated Overhead Cost pool Material receipts Machine setups Assembly Inspection $ 133,000 300,000 700,000 250,000 Total $1,383,000 It has also estimated the activities for each cost driver as follows: Driver Generic Label Inspections Requisitions Parts 400 600 450 950 300 400 Setups 250 350 How much is the overhead allocated to each unit of Generic and Label?

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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PA5. LO 6.3 Medical Tape makes two products: Generic and Label. It estimates it will
produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost
pools is as follows:
Estimated
Cost pool
Overhead
Material receipts
Machine setups
Assembly
Inspection
$ 133,000
300,000
700,000
250,000
Total
$1,383,000
It has also estimated the activities for each cost driver as follows:
Driver
Generic
Label
Inspections
Requisitions
Parts
400
600
950
400
450
300
Setups
250
350
How much is the overhead allocated to each unit of Generic and Label?
Transcribed Image Text:PA5. LO 6.3 Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: Estimated Cost pool Overhead Material receipts Machine setups Assembly Inspection $ 133,000 300,000 700,000 250,000 Total $1,383,000 It has also estimated the activities for each cost driver as follows: Driver Generic Label Inspections Requisitions Parts 400 600 950 400 450 300 Setups 250 350 How much is the overhead allocated to each unit of Generic and Label?
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