Rawlings Corp. has two product lines, A and B. Rawlings has identified the follo

Question

Rawlings Corp. has two product lines, A and B. Rawlings has identified the following information about its overhead and potential cost drivers.


Total overhead--------------------$76,360
Cost drivers
Number of labor hours---------3,300
Number of machine hours-----46,000

1. Suppose the Rawlings Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 65% of the labor hours and Product B requires 35%. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Overhead assigned
Product A:$____________
Product B:$____________

2. Suppose Rawlings uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 16,900 machine hours and Product B consumes 29,100. (Round intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

Overhead assigned
Product A:$____________
Product B:$____________

Explanation / Answer

1. Overhead assigned Product A = 65% * $76,360 = $49,634 Product B = 35% * $76,360 = $26,726 2. Product A consumes 16,900 machine hours % of machine hour consumed by Product A = 16,900/46,000 = 36.73% Product B consumes 100%- 36.73% = 63.26% Overhead assigned Product A = 36.73% * $76,360 = $28,047 Product B: = 63.26% * $76,360 = $48,360

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.