## Answers

a.

Overhead rate per direct labor hour = $240000 / 8000 = $30 per DLH

X301 | Z205 | |

Direct Material | $ 33,000 | $ 33,000 |

Direct Labor | $ 30,500 | $ 30,500 |

Manufacturing Overhead | $ 15,000 | $ 15,000 |

Total Costs | $ 78,500 | $ 78,500 |

Number of Units | 1000 | 1000 |

Unit Cost | $ 78.50 | $ 78.50 |

b.

Overhead Costs | Cost Driver | Cost Driver Volume | Cost Driver Rate | |

Assembly Setups | $ 63,000 | Setup hours | 1500 | $ 42.00 |

Material Handling | $ 33,000 | Number of Moves | 300 | $ 110.00 |

Assembly | $ 120,000 | Assembly hours | 12000 | $ 10.00 |

Maintenance | $ 24,000 | Maintenance hours | 1200 | $ 20.00 |

$ 240,000 |

X301 | Z205 | |

Direct Material | $ 33,000 | $ 33,000 |

Direct Labor | $ 30,500 | $ 30,500 |

Manufacturing Overhead | ||

Assembly Setups | $ 2,100 | $ 4,200 |

Material Handling | $ 2,750 | $ 5,500 |

Assembly | $ 8,000 | $ 8,000 |

Maintenance | $ 200 | $ 800 |

Total Costs | $ 76,550 | $ 82,000 |

Number of Units | 1000 | 1000 |

Unit Cost | $ 76.55 | $ 82.00 |

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