Chat with us, powered by LiveChat Ascend Company makes three models of jump drives i - Writemia

Ascend Company makes three models of jump drives i

Ascend Company makes three models of jump drives in its factory: J512, J1G, and J4G. The expected overhead costs for the next fiscal year are as follows:Payroll for factory managers . $150,000Factory maintenance costs . 60,000Factory insurance 30,000Total overhead costs $240,000Ascend uses labor hours as the cost driver to allocate overhead cost. Budgeted labor hours for the products are as follows:J512 2,000 hoursJ1G . 1,200J4G 800Total labor hours .. 4,000Requireda. Allocate the budgeted overhead costs to the products.b. Provide a possible explanation as to why Ascend chose labor hours, instead of machine hours, as the allocation base.Ascend Company makes three models of jump drives in its

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