Indirect Labor $400,000 Indirect Materials Other Overhead $165,000 Production Activity Grinding Polishing Product modification Providing power System calibration 650,000 $230,000 590,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 12,000 machine hours 12,000 machine hours 1,700 engineering hours 15,000 direct labor hours 550 batches Job 3175 200 units 500 Job 4286 2,500 units 5,000 Number of units Machine hours Engineering hours Batches Direct labor hours 30 eng 300, hours 5 batches 430 DLH hours 15 batches 3,070 DEN Required: 1. Cinsiy each activity as unit level, batch level, product level, or facility level. Grinding Produto Pro 2,3 & 4. Compute the activity overhead rates using ABC. Combine the grinding and polishing activities into a single cost po Determine overhead costs to assign to the following jobs using ABC. What is the overhead cost per unit for Job 3175? What overhead cost per unit for Job 4286? (Round your activity rate and average overhead cost per unit to 2 decimal places, R. "overhead assigned to the nearest whole dollar.) Overhead Cost Activity Rate Activity drive Activity Grinding & Polishing Product modification Providing power System calibration Activity Drivers Machine hours Engineering his Direct labor hos batches Combine the grinding and polishing activities into a single cost pool using ABC. What is the overhead cost per unit for Job 3175? What is the lity rate and average overhead cost per unit to 2 decimal places. Round Job Overhead Acovity Rate y Drivers Machine on Engineering Direct labore De Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places 0 Product DL hours Units Produced OH Cost per unit Job 3175 Job 4286 Plantwide OH Total Overhead Cost rate $ 0.00 $ 0 $ 0.00 $ 0 4 The following data are for the two products produced by Tedros Company Direct materials Direct labor hours Machine hours Matches Volume Ingineering modifications Number of customers Market price Product A $14 per unit 0.4 L per unit 0.3 l per unit 115 batches 10,000 units 9 modifications 500 customers 535 per unit Product B $25 per unit 1.5 DLH per unit 1.1 MH per unit 230 batches 2,000 units 45 modifications 400 customers 95 per unit per unit The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. coats Driver Todirect manufacturing Engineering support Electricity Setup coate Nontacturing Customer service $27,000 Engineering soditieations 26.000 Machine hours 43,000 Batehes 74,000 Huber of custom Required: (Round your per unit cost answers to 2 decimal places and other answers to nearest whole number. Los amounts shu Indicated with minus sign.) 1. Compute the manufacturing cost per unit wing the plantwide vahead Based on direct shor hours Overhead Assigned Driver Plantide Orte Total Overhead Cost Caster 1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Overhead Assigned Product A Product B Product A Product B 12 What is the gross profit per unit? Product A Product B Market price Gross profit per unit 2. How much gross profit is generated by sath customer of Product A and Products using the plantwide overhead wie Product A Product Gross profit per unit Units purchased per customer Gross proper customer 2. What is the cost of providing customer service to ach custom Gross profit per customer 2.2 What is the cost of providing customer service to each customer? Is the gross profit adequate for each customer of Product A and B using the plantwide overhead rate? Product A Product B Gross profit per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate? 3.1 Determine the manufacturing cost per unit of each product line using ABC. Engineering Support Electricity Setup Activity Driver Activity rate Total Overhead Cost Overhead Assigned Product A Engineering support Electricity Setup Overhead Assigned Activity Driver Activity rate Total Overhead Product A Engineering support Electricity Setup Product B Engineering support Electricity Setup Product A Product B Total manufacturing costs Direct Materials per unit Direct Labor per unit Overhead per unit Total manufacturing cost per unit 3.2 What is the gross profit per unit? Product A Product B Market price (25.38) (86.08) 3.2 What is the gross profit per unit? Product A Product B 4 Market price (25.38) (86.08) 4.1 How much gross profit is generated by each customer of Product A and Product B using ABC? Product A Product B Units purchased per customer Gross profit (loss) per customer 4.2 is the gross profit adequate for each customer of Product A and B using ABC? Product A Product B Gross profit (loss) per customer Customer service cost per customer Profit (loss) per customer Is the profit adequate using ABC? 5. Which method of product costing gives better information to managers of this company? Departmental overhead rate method Plantwide overhead rate method Activity-based costing method Mr
