(Solution) - Thompson Company manufactures a variety of high and low volume products -(2025 Original AI-Free Solution)

Paper Details

Thompson Company manufactures a variety of high- and low-volume products, including product 456, in its Westchester Plant. The following information pertains to the most recent year:

Required:
(1) If the Westchester Plant accumulates all overhead in a single cost pool and allocates it on the basis of machine hours, how much overhead cost will be allocated to a unit of Product 456?
(2) If the Westchester Plant uses ABC with setups as the driver for all batch-level overhead, design hours as the driver for all product-level overhead, and machine hours as the driver for all unit- and plant-level overhead, how much overhead cost will be allocated to a unit of Product 456?