Problem:
According to the cost allocation methods used in the company's accounting system that are described in the Production Cost Report, if a company employs 100 PATs at a total labor cost of $12,000,000 (including wages, fringes, incentives, overtime, training, and severance expenses), assembles and ships 900,000 entry-level cameras and 300,000 multi-featured cameras over the course of a year, has revenues of $100 million from sales of entry level cameras, and revenues of $100 million from the sale of multi-featured cameras
Required:
Question 1) The total annual labor costs allocated to the assembly and shipment of entry-level cameras and the labor costs per entry-level camera assembled and shipped, respectively, will be
a) $6,000,000 and $20.00.
b) $3,000,000 and $10.00.
c) $6,000,000 and $6.67.
d) $9,000,000 and $10.00.
e) $9,600,000 and $12.00.
Solve the problem and show all work.