Reference no: EM132866296
Comfort living produces three types of three luggage sets (Carryon, Upright, and Duffel )
Carryon Upright Duffel
Quantity 8,000 sets 12,000 sets 6,000 sets
Selling price $800 per set $ 800 per set $600 per set
Direct material and direct labour costs $340 per set $600 per set $360 per set
The following were provided on the overhead costs to be assigned to each product.
Activity Allocation base TotalCost Carryon Upright Duffel
Setups Setups $350,000 2,000 2,600 2,400
Ordering Orders $120,000 180 160 260
General Overhead Machine hours $260000 9,000 10,000 7,000
Compute the activity rates for each activity.
2. Compute the total amount of overhead to be allocated to each type of luggage.
3. Compute profit per unit for Duffel luggage.