Professional Documents
Culture Documents
Driver usage
Overhead
cost pool Cost Driver Rate Product X
Machine setup $ 60.00 300
Engineering change order $ 400.00 20
Facility rent $ 90.00 300
Total costs assigned
Product Y Total
$ 80,000 $ 1,080,000
$ 60,000 $ 400,000
$ 137,000 $ 190,000
$ 277,000 $ 1,670,000
2,000
$ 138.50
Product Y Total
$ 80,000 $ 1,080,000
$ 60,000 $ 400,000
$ 28,500 $ 190,000
$ 168,500 $ 1,670,000
2,000
$ 84.250
Product X Product Y
Production in units 20,000 2,000
Direct materials cost per unit $ 50.00 $ 40.00
Direct labor cost per hour $ 10.00 ###
Direct labor hours 34,000 6,000
Total direct labor cost $ 340,000 $ 60,000
Direct labor cost per unit $ 17.00 $ 30.00
Direct materials
Direct labor
Overhead
Unit cost
Cost assignment
Product X Product Y
18,000 42,000
8,000 32,000
27,000 63,000
53,000 137,000
20,000 2,000
2.65 68.50
$ 50.00 $ 40.00
17.00 30.00
2.65 68.50
$ 69.65 $ 138.50
34,000 6,000
$ 161,500 $ 28,500
20,000 2,000
$ 8.075 $ 14.250
$ 50.00 $ 40.00
17.00 30.00
8.08 14.25
$ 75.08 $ 84.25