Blackwelder Co. manufactures a variety of electric razors used by both men and women. The…

Blackwelder Co. manufactures a variety of electric razors used by both men and women. The company’s plant is partially automated. The company uses an activity-based cost system. Listed below is cost driver information used in the product-costing system:

Overhead Cost pool

Budgeted Overhead Cost

Budgeted Cost Driver Level

Cost Driver

Machine depreciation/

$227,500

25,000

Machine hours

Maintenance Factory depreciation/ Utilities/insurance

154,940

25,400

Machine hours

Product design

665,720

35,600

Hours in design

Material purchasing/storing

1,293,760

124,400

Raw materials

Two current product orders had the following requirements:

Men’s Razors

Women’s Razor

Units produced and sold

26,000

30,000

Direct labor hours

50

40

Pounds of raw materials

980

1,120

Hours in design

32

38

Machine hours

85

60

Required:
1. Using ABC costing, how much overhead is assigned to the order for men’s razors?
2. Using ABC costing, how much overhead is assigned to the order for women’s razors?

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