Freeze Frame, Inc

question 12

Essay

Freeze Frame, Inc. produces cameras which require three processes, A, B and C, to complete. Digital camera model #789 is the best selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below.
Freeze Frame's total expected overhead costs and related overhead data are shown below.

(a.) Compute a departmental overhead rate for department A based on direct labor hours.
(b.) How much overhead is associated with model 789 from department A?
(c.) Compute a departmental overhead rate for department B based on direct labor hours.
(d.) How much overhead is associated with model 789 from department B?
(e.) Compute a departmental overhead rate for department C based on direct labor hours.
(f.) How much overhead is associated with model 789 from department C?
(g) What is the per unit cost of the 550,000 units of model 789?

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Definitions:

Mean

A measure of central tendency, calculated as the sum of all values in a dataset divided by the number of values.

Geometric Mean

The average of a set of numbers or quantities, computed by taking the nth root of the product of the numbers.

Mode

The value that appears most frequently in a data set, a measure of central tendency.

Variance

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared differences from the mean.