39. LO.4 (ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The company's products and related statistics follow. Direct material in pounds Direct labor hours Machine hours Number of setups Number of units produced Product A 139,500 30,000 52,500 430 15,000 Product B 190,500 37,500 22,500 860 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hour costs $12. a. Assume that Illiad Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. b. Assume that Illiad Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. c. Assume that Illiad Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver Utilities # of machine hours Setup # of setups Material handling # of pounds of material Determine the total cost for each product and the cost per unit. Cost $ 750,000 193,500 1,419,000

39. LO.4 (ABC) Illiad Inc. has a total of $2,362,500 in production overhead costs. The company's products and related statistics follow. Direct material in pounds Direct labor hours Machine hours Number of setups Number of units produced Product A 139,500 30,000 52,500 430 15,000 Product B 190,500 37,500 22,500 860 7,500 Additional data: The 330,000 pounds of material were purchased for $544,500. One direct labor hour costs $12. a. Assume that Illiad Inc. uses direct labor hours to apply overhead to products. Determine the total cost for each product and the cost per unit. b. Assume that Illiad Inc. uses machine hours to apply overhead to products. Determine the total cost for each product and the cost per unit. c. Assume that Illiad Inc. uses the following activity centers, cost drivers, and costs to apply overhead to products: Cost Pool Cost Driver Utilities # of machine hours Setup # of setups Material handling # of pounds of material Determine the total cost for each product and the cost per unit. Cost $ 750,000 193,500 1,419,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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