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lythong266 lythong266
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A month ago
Mantle Co. manufactures baseball bats. The company's total overhead consists of assembly costs and inspection costs. The following data is available:

Cost PoolWoodAluminumTotal Cost
Assembly500 machine hrs.500 machine hrs.$ 45,000
Inspections350 inspections150 inspections75,000
2,100 labor hrs.1,900 labor hrs.

Total overhead assigned to aluminum bats assuming a single overhead rate and using activity-based costing, respectively, are

▸ $63,000 and $57,000.

▸ $57,000 and $45,000.

▸ $57,000 and $75,000.

▸ $63,000 and $75,000.
Textbook 

Managerial Accounting


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Marinaanderson0Marinaanderson0
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A month ago
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More solutions for this book are available here
$57,000 and $45,000.

Solution for Single OH Rate: ($45,000 + 75,000) ÷ (2,100 + 1,900) = $30 per DLH;
$30/DLH × 1,900 DLH = $57,000;
Solution for ABC: Assembly $45,000 ÷ (500 + 500 MH) = $45 per MH;
Inspections: $75,000 ÷ (350 + 150 inspections) = $150 per inspection;
ABC: ($45 × 500) + ($150 × 150) = $45,000
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