Reference no: EM132870450
Question - Curve Company produces three different types of table saws: basic, deluxe, and awesome. Corresponding production volumes are 1,000 basic, 750 deluxe, and 200 awesome.
Curve managers have collected the following information.
Resource spending (currently called "overhead"):
Indirect labor wages and benefits $ 124,000
Utilities $ 38,000
Information system $ 25,000
Activities
Scheduling production runs
Configuring production lines and equipment
Production
Management and oversight
Curve managers feel that these resources and activities comprise three pools: production, production setup and product line management. Based on information collected, the following percentage breakdown was determined:
Production Setup Product Mgmt
Indirect labor wages and benefits 25% 60% 15%
Utilities 50% 40% 10%
Information system 15% 10% 75%
Required - Use the information provided to estimate the amount of overhead resources allocated to a single awesome table saw.