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Problem - Bluefield Corp. has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers:
Total overhead $71,400
Cost drivers
# of labor hours 1,600
# of machine hours 42,000
Suppose Bluefield Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 76 percent of the labor hours and Product B requires 24 percent. (Round your final answer to nearest whole dollar amount.)
Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 16,100 machine hours and Product B consumes 25,900. (Round intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount.)
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