Ask Question
15 December, 11:11

Performance Bicycle Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make one handle bar of either type. During the most recent accounting period, Barr Company made 7,000 steel bars and 3,000 titanium bars. Setup costs amounted to $84,000. One batch of each type of bar was run each month. If a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:

+1
Answers (1)
  1. 15 December, 12:39
    0
    Particulars Steel Bars Titanium Bars

    Units Per Batch 7000 3000

    Hours Per Unit 1 1

    Total Hours 7000 3000

    Overhead rate on the basis of direct labor = Total Overhead / Total labor hours = 84,000/10,000 i. e 8.40

    Overhead cost allocated to steel bars = 8.40*7000 = 58,800
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Performance Bicycle Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make one handle ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers