Author Question: Auburn, Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and ... (Read 70 times)

stananza · **on:** Feb 5, 2023

Auburn, Inc.'s overhead costs of $700,000 consist of machining $400,000; inspecting $200,000; and packaging $100,000. Machining works 4,000 hours a year, 500 inspections occur each year, and 1,000 packing order occur each year. Information on the company's two products are as follows:

Alpha

Omega

Machining hours

1,000

3,000

Inspections

100

400

Packing orders

350

650

Direct labor hours

1,700

1,800

How much overhead is allocated to Omega using a single overhead rate (based on direct labor hours) and using ABC, respectively?
◦ $340,000 and $360,000
◦ $340,000 and $175,000
◦ $360,000 and $525,000
◦ $360,000 and $175,000

leilani49 · **Reply #1 on:** Feb 5, 2023

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