Shaver co manufactures variety of electric razors for men


Problem - Shaver Co. manufactures a variety of electric razors for men and women. The company's plant is partially automated. Listed below is cost driver information used in the product-costing system:

Overhead Cost PoolBudgeted Overhead CostBudgeted Cost Driver LevelCost DriverMachinery depreciation/maintenance$168,64027,200Machine hoursFactory depreciation/utilities/insurance127,84027,200Machine hoursProduct design554,40038,500Hours in designMaterial handling1,078,000134,750Pounds of raw materials

In addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product orders had the following requirements:

Men's RazorsWomen's RazorsUnits produced and sold20,00026,000Direct labor hours3040Pounds of raw materials860750Hours in design2023Machine hours6550

Using ABC, how much product-level overhead is assigned to the current order for Men's Razors?

$218.00.

$250.70.

$331.20.

$284.00.

$288.00.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Shaver co manufactures variety of electric razors for men
Reference No:- TGS02396657

Now Priced at $25 (50% Discount)

Recommended (95%)

Rated (4.7/5)