Halcyon Company expects to incur $300,000 in manufacturing overhead for the coming year. The company makes...

Halcyon Company expects to incur $300,000 in manufacturing overhead for the coming year. The company makes two products, A and B, and it has accumulated the following budget information for the products:

	Product A	Product B	Total
Number of units to be produced	10,000	5,000	15,000
Direct Labor Hours	2 per unit	1 per unit	25,000
Machine hours	2 per unit	2 per unit	30,000

1) Assume that Halcyon allocates manufacturing overhead cost using direct labor hours. Amount of overhead allocated to each unit of product A = $..................................

Total amount of overhead allocated to all the units of product B = $.......................................

2) Now assume that Halcyon allocates manufacturing overhead cost usin machine hours. Total amount of overhead allocated to ALL the units of product A = $.........................

Amount of overhead allocated to each unit of product B = $....................................................................

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ekkarill92 answered 1 year ago

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