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ow conneet.html eck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not Fenway Electronics produces video games in three market categories: commercial, home, and miniature. Fenway has traditionally allocated overhead costs to te three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it Installed computer controlled assembly stations that rendered the traditional costing system Ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers: Pooled Types of Costs Unit $360,000 Indirect labor wages, supplies, factory Machine hours utilities, machine maintenance Batch 194,400 Materials handling, inventory storage Number of productiorn labor for setups, packaging, labe1ing and shipping, scheduling orders Product 105,600 Time spent by research department Square footage Research and development Facility 300,000 Rent ,?general utilities, maintenance, facility depreciation, admin. salaries Additional data for each of the product lines follow: t naterial 25.00/unit 1 s 25.00/unit 15.00/unit 12.00/unit Direct labor cost 10.00/hour Number of labor hours 8.00/hour 9.00/hour 12,000 6,000 2,000 20,000 MacBook Air 889 5 7 8 9Explanation / Answer
Category total cost per unit Pooled driver cost Unit 360,000 80,000 MH's 4.5 Batch 194,400 3,000 production orders 64.8 Product 105,600 100% research time Facility 300,000 100,000 Square footage 3 Allocated overhead commercial Home miniature total Unit 45000 202500 112500 360000 Batch 12960 129600 51840 194400 Product 10560 21120 73920 105600 Facility 60000 150000 90000 300000 total 128520 503220 328260 960000 b) Type of Product total cost cost per unit commercial 563520 37.57 Home 1274220 28.32 Miniature 514260 36.73 combined total 2352000
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