Q.Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department.
Extracted text: Acclaim Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. ACciam does iarge custom orders. Acclaim budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, setup and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but be- cause of the more intricate detail of the deluxe trophies, they are formed in batches of 50. The controller has asked you to compare plant-wide, department, and activity-based cost allocation. Acclaim Budgeted Intormation for the Year Ended November 30, 2017 Forming Department Basic S60,000 30,000 Deluxe $35,000 20,000 Total $95,000 50,000 Direct materials Direct manufacturing labor Overhead costs Setup 48,000 32,000 General overhead Assembly Department Total $15,000 Basic $5,000 15,000 Deluxe Direct materials $10,000 25,000 Direct manufacturing labor 40,000 Overhead costs General overhead 40,000