Downward Facing Dog Produces Yoga Products In Thepast A Traditional Overhead App

If one of the company’s products requires5,000 machine hours and 200 inspection hours, would the product have been overcosted or undercosted under the traditional overhead allocation system and by how much in total?

Given,General Factory O/H CostInspection Overhead Cost Budgeted manufacturing overheadCost driver500,000210,000710,000 50,0005,000 Requirement of one ProductMachine HoursInspection Hours…