Blalock Company Manufactures and Distributes Several Different Products Required:
A

question 53

Essay

Blalock Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $10 per direct labor hour. Department A produces Products #101X and #102Y. Department A has $262,000 in traceable overhead. Department B manufactures Product #103Z. Department B has $128,000 in traceable overhead. The product costs (per unit) and other information are as follows:
$\begin{array}{lccc}&&\text { Products }\\&101 \mathrm{X} & 102 \mathrm{Y} & 103 \mathrm{Z}\\ \text { Direct materials } & \$ 60.00 & \$ 58.00& \$ 46.00 \\ \text { Direct labor } & 42.00 & 31.50 & 12.00 \\ \text { Overhead } & 40.00 & 30.00 & 20.00 \\& \$ 142.00 & \$ 119.50& \$ 78.00\\\text { Machine hours (per unit) } & 4 & 2 & 3 \\\text { Number of cases (per year) } & 3,000 & 5,000& 6,000\end{array}$
Required:
a. If Blalock changes its allocation basis to machine hours, what is the total overhead cost per unit for Product 101X, 102Y, and 103Z?
b. If Blalock changes its overhead allocation to departmental rates, what is the overhead cost per unit for Product 101X, 102Y, and 103Z, assuming Departments A and B use direct labor hours and machine hours as their respective allocation bases?

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Definitions:

Epigenetic Marks

Chemical modifications to DNA and histone proteins that affect gene expression without altering the DNA sequence.

Paternally Transmitted Genes

Genetic information passed from father to offspring, influencing traits and characteristics.

Chromosome

A long, continuous thread of DNA that contains numerous genes and regulatory information.

Sexual Orientation

Refers to the pattern of emotional, romantic, or sexual attraction to others.