I need to calc allocated costs for production. Given that the following data is

Question

I need to calc allocated costs for production.
Given that the following data is available:

Total
Pooled
Category Cost Types of Costs Cost Driver
Unit $720,000 Indirect labor wages, supplies, depreciation, Machine hours
machine maintenance
Batch 388,800 Materials handling, inventory storage, labor for setups, Number of production orders
packaging, labeling and shipping, scheduling
Product 211,200 Research and development Time spent by research department
Facility 600,000 Rent, utilities, maintenance, admin. salaries, security Square footage


Commercial Home Miniature Total
Direct materials cost per unit $36.00 $24.00 $30.00
Direct labor cost per hour $14.40 $14.40 $18.00
Number of labor hours 6,000 12,000 2,000 20,000
Number of machine hours 10,000 45,000 25,000 80,000
Number of production orders 200 2,000 800 3,000
Research and development time 10% 20% 70% 100%
Number of units 15,000 45,000 14,000 74,000
Square footage 20,000 50,000 30,000 100,000

What is the allocated overhehad if the rate is 14.40 and the no. of hour is 6000

Explanation / Answer

Cost driver

Commercial

Home

Miniature

Total

Cost driver

Commercial

Home

Miniature

Total

Direct materials cost per unit Produced units 540000 1080000 420000 2040000 Direct labor cost per hour Labor hours 86400 172800 36000 295200 Total Direct costs -(A) $626,400 $1,252,800 $456,000 $2,335,200 Indirect labor wages, supplies, Depreciation Machine hours 90000 405000 225000 720000 Materials handling, storage, labor for setups Production orders 25920 259200 103680 388800 Research and development R&D time spent 21120 42240 147840 211200 Rent, Utilities, Maintainense, admin. Salaries Footage 120000 300000 180000 600000 Total Allocated costs - (B) $257,040 $1,006,440 $656,520 $1,920,000 Total cost - (A + B) $883,440 $2,259,240 $1,112,520 $4,255,200

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