Ultimate Vision Corporation Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:

LCD TV’s Projection TV’s

Units Produced 1,500 2,250

Direct labor hours per Unit 20 30

Material Moves per Product Line 15 20

Budgeted Materials Handling Cost $75,000

Total Machine Hours 10,000 16,000

Machine Maintenance Costs $180,000

Refer to Ultimate Vision Corporation.If the company uses number of units produced to allocate factory overhead,the machine maintenance cost allocated to projection TVs would be: A)$ 72,000 B)$108,000 C)$110,769 D)$124,615

Question

Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:

		LCD TV’s	Projection TV’s
Units Produced		1,500	2,250
Direct labor hours per Unit		20	30
Material Moves per Product Line		15	20
Budgeted Materials Handling Cost	$75,000
Total Machine Hours		10,000	16,000
Machine Maintenance Costs	$180,000

Refer to Ultimate Vision Corporation.If the company uses number of units produced to allocate factory overhead,the machine maintenance cost allocated to projection TVs would be: A)$ 72,000 B)$108,000 C)$110,769 D)$124,615

Quizplus · Accepted Answer

The total units produced are 1,500 (LCD TVs) + 2,250 (Projection TVs) = 3,750 units. The machine maintenance cost of $180,000 should be allocated based on the proportion of units produced. Projection TVs account for 2,250 out of 3,750 units, which is 60% (2,250 / 3,750). Therefore, 60% of $180,000 is allocated to projection TVs, which is $108,000 ($180,000 * 60%).

Ultimate Vision Corporation Ultimate Vision Corporation Has Two Product Lines: LCD Televisions and LCD