Bass Boss Manufacturing Company manufactures two types of bass boats.Bass Boss provides the following data, pertinent to allocating its annual overhead cost of $435,000: $\begin{array}{lcc}
\hline \text { Bass Boss Product } & \text { Boss } & \text { Boss } \
& \text { Hog } & \text { Bear } \
\text { Units per year } & 15,000 & 20,000 \
\text { Machine hours/unit } & 3.0 & 5.0\\hline
\text { Materials cost/unit } & \$ 1,500 & \$ 2,000 \
\text { Labor cost/unit } & \$ 800 & \$ 1,000\\hline
\end{array}$ What is the amount of manufacturing overhead allocated to Boss Bear?

Question

Quizplus · Accepted Answer

To allocate the overhead cost, we first need to calculate the total machine hours for both products. For Boss Hog: $15,000 \text{ units} \times 3.0 \text{ hours/unit} = 45,000 \text{ hours}$. For Boss Bear: $20,000 \text{ units} \times 5.0 \text{ hours/unit} = 100,000 \text{ hours}$. The total machine hours are $45,000 + 100,000 = 145,000 \text{ hours}$. The overhead rate per machine hour is $\$435,000 / 145,000 \text{ hours} = \$3 \text{ per hour}$. For Boss Bear, the overhead allocated is $100,000 \text{ hours} \times \$3 \text{ per hour} = \$300,000$.

Bass Boss Manufacturing Company Manufactures Two Types of Bass Boats