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Estimate the amount of overhead resources

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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.

Reference no: EM132875887

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