Question: Problem C, Part 3- How much MOH would be allocated to Gold Bands per u

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Question: Problem C, Part 3- How much MOH would be allocated to Gold Bands per unit, under the traditional method? (Round to two decimals.)

ProblemC Quickly Enterprises makes a variety of products. The company had been using a traditional method of allocating MOH using MH as the allocation base Total MOH for the year is expected to be Total MH for the year is expected to be: 1,017,831 15,250 The company is considering using activity-based costing for allocating MOH to their products You have received the following information: Actvity Activity Cost Pool MeasureActivi Total Activi Prepping $ 394,200 DLH Assembly $ 526,125 MH Packaging 97,506 Cu. Feet 14,600 15,250 406,275 You also have the following information for one of their products, Gold Bands Expected production Expected DLH Expected MH Product dimensions 50,000 gold bands 2,500 per year 1,500 per year 0.20 per unit (in cubic feet) HINT: Pay close attention to the measure of activity when calculating your answers.

Explanation / Answer

Manufacturing overhead rate = 1017831/15250 = 66.74 per mh

Manufacturing overhead allocated to Gold bands = 66.74*1500 = 100110

Manufacturing overhead per unit of gold bands = 100110/50000 = 2.00 per unit

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