Respuesta :
Answer:
Explanation:
the solution to the problem is shown in the file attached below
The amount of batch-level overhead costs expected by Berry Co is $138,000.
Data and Calculations:
Expected production output = 24,000 units
ACTIVITIES: UNIT BATCH PRODUCT FACILITY
LEVEL LEVEL LEVEL LEVEL
Cost $70,000 ? $23,000 $240,000
Cost Driver 5,000 labor hrs 120 set ups % of use 30,000 units
Usage for 2,000 units
Actual use 600 labor hrs 16 setups 35% 2,000 units
Total overhead allocated for 2,000 units = $34,850
Overhead for 2,000 units:
Unit level overhead = $8,400 ($70,000/5,000 x 600)
Product-level overhead = $8,050 ($23,000 x 35%)
Total overhead allocated = $34,850
Batch-level overhead for 2,000 units = $18,400 ($34,850 - $8,400 - $8,050)
Thus, the amount of batch-level overhead costs expected by Berry Co is $138,000 ($18,400/16 x 120).
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