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1 7 24 points Dace Company manufactures two products. Product F and Product G. The company expects to produce and sell 3,200 units of
1 7 24 points Dace Company manufactures two products. Product F and Product G. The company expects to produce and sell 3,200 units of Product F and 2,100 units of Product G during the current year. Data relating to the company's manufacturing overhead and three activity cost pools are given below for the current year: Activity Cost Pool Machine setups Total Cost $7,020 Purchase orders General factory $69,700 $101,160 Product F 130 setups 520 orders 3.520 Activity Measures Product G 130 setups Total 260 setups 1,180 orders 1,700 orders 2.100 MHs 5,620 machine hours (MHS) Required (show supporting calculations to receive credit): 1.(5 points) Using the plant-wide overhead allocation method with machine hours as the only cost driver, determine: (a) the total overhead allocated to Product F and Product Gand (b) the overhead cost per unit for each product. 2.(15 points) Using the activity-based costing anncoach, determine: (a) the activity rates, (b) the overhead costs allocated to Product F and Product G, and (c) the overhead cost per unit for each product. 3. (4 points) When activity-based costing is used, why do manufacturing overhead costs often shift from high-volume products to low-volume products? Edit View Insert Format Tools Table 12pt Paragraph B IUAV Tv EM To BB
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