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1. Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Total Direct Labor-Hours
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Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Total Direct Labor-Hours Annua Production 20,000 units 42,000 units Product X200 Direct Labor-Hours 0.4 DLHs per unit 0.6 DLHs per unit 8,000 DLHs 25,200 DLHs 33,200 DLHs Additional information about the company follows a. Model X200 requires $43 in direct materials per unit, and model X99 requires $32. b. The direct labor workers are paid $50 per hour c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment. e. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows Estimated Total Activity Estimated X99 Activity Cost Poo l Machine setups Special process ing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Total Cost X200 96 353, 100 .070 Total $ 175,200 144 240 1,070 33,200 1,328,000 8,000 25,200 1,856,300 Required 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products a. Compute the plantwide predetermined overhead rate b. Compute the unit product cost of each model Req 1A Req 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the plantwide predetermined overhead rate. (Round the final answer to nearest whole number.) Predetermined overhead rate per DLH Req 1A Req 2A Part 1 Req 2A Part 2 Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round "Predetermined overhead rate" to nearest dollar amount. Round other intermediate calculations and final answers to 2 decimal places.) Model X200 X99 Unit product cost Req 1A Req 1BReq 2A Part 1 Req 2A Part 2 Req 2E Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH per DLH Req 1A Req 1BReq 2A Part 1 Req 2A Part 2 Req 2B Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Determine the amount of overhead cost that would be applied to each model using the activity-based approach. (Round "Overhead cost per unit" answers to 2 decimal places.) Model X200 Model X99 Total overhead cost Overhead cost per unit Req 1A Req 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost of Model X200 Unit product cost of Model X99
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