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TriTech Company has been allocating overhead to ind… Show

TriTech Company has been allocating overhead to ind… Show more Problem 6-14 (Part Level Submission) TriTech Company has been allocating overhead to individual product lines based on each line’s relative shares of direct labor hours. For the upcoming year, the company estimated that manufacturing overhead will be $1,811,280 and estimated direct labor hours will be 122,700. The company also has the following estimates: Cost Pool Cost Driver Total Amount Total Amount Total Amount of Activity Total Amount of Activity Maintenance costs Direct labor hours $ 662,580 122,700 Setup costs Number of setups 539,700 210 Engineering costs Number of design changes 609,000 420 $1,811,280 Among many other products, TriTech has two switches, Standard and Elite switches. Standard switches are a high-volume product that the company makes in large batches, while Elite switches are a specialty product that is fairly low in sales volume. Information about Standard and Elite usage of the different activities follows: Standard Standard Elite Direct labor hours 3,100 300 Number of setups 2 13 Number of design changes 2 20 (a) Calculate the predetermined overhead rate based on direct labor hours (traditional allocation). (Round answer to 2 decimal places, e.g. 15.25.) Predetermined overhead rate $ per DLH Use this predetermined overhead rate to calculate the amount of overhead to apply to Standard and Elite switches, based on their usage of direct labor hours. Standard Elite Overhead allocated $ $ • Show less

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