Question

Crane is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued hard cover or a deluxe, hand-embossed, hand-stitched, leather cover. Crane currently allocates overhead to the books based on direct labor hours. A recent activity analysis conducted by the controller revealed the following information.
Standard Edition Deluxe Edition
Units produced 404000 13000
Direct labor hours 444400 35100
Printing press hours 68380 2210
Sales orders 12120 14300
Calculate the following for each product:
Standard edition Deluxe edition
Direct labor hours per unit __________DLH / unit _______DLH / unit
Printing press hours per unit _________PPH / unit _______PPH / unit
Sales orders per unit __________order / unit _______order / unit

Answer 1

Answer:

Instructions are below.

Explanation:

Giving the following information:

Standard Edition - Deluxe Edition

Units produced= 404,000 - 13,000

Direct labor hours= 444,400 - 35,100

Printing press hours= 68,380 - 2,210

Sales orders= 12,120 - 14,300

Direct labor hours per unit= total direct labor hours/ total units

Standard= 444,400/404,000= 1.1 hours per unit

Deluxe= 35,100/13,000= 2.7 hours per unit

Printing press hours per unit:

Standard= 68,380/404,000= 0.1693 hours per unit

Deluxe= 2,210/13,000= 0.17 hours per unit

Sales orders per unit:

Standard= 12,120/404,000= 0.03 hours per unit

Deluxe= 14,300/13,000= 1.1 hours  per unit