Assume that Swifty has identified three activity cost pools. Swifty is an electronics components manufacturer. Information about the company's two products follows:AM-2FM-9Units produced20,0006,000Direct labor hours required for production10,00015,000Units per batch4,000600Shipping weight per unit0.50 Ibs.10 Ibs.The company incurs $ 860,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours. PoolCostCost DriverAssembly$ 600,000Direct labor hoursSetup36,000Number of setups (1 per batch)Packaging224,000Weight(i) Given these activity pools and cost drivers, how much overhead should be allocated to each product? (Round per unit rates to2 decimal places, e.g. 3.54 and final answers to O decimal places, eg. 45,286.)AM-2FM-9$Total allocated overhead(ii) What overhead cost per unit will be allocated to each product? (Round answers to 2 decimal places, e.g. 15.25.)AM-2FM-9Overhead cost per unit%24%24%24%24

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Swifty is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 20,000 6,000 Direct labor hours required for production 10,000 15,000 Units per batch 4,000 600 Shipping weight per unit 0.50 Ibs. 10 Ibs. The company incurs $ 860,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Swifty is an electronics components manufacturer. Information about the company's two products follows: AM-2 FM-9 Units produced 20,000 6,000 Direct labor hours required for production 10,000 15,000 Units per batch 4,000 600 Shipping weight per unit 0.50 Ibs. 10 Ibs. The company incurs $ 860,000 in overhead per year and has traditionally applied overhead on the basis of direct labor hours.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1MC: Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses...

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