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Exercise 17-3 Computing plantwide overhead rates L0 P1 Xie Company identied the following activities. costs. and activity drivers for this year. The company manufactures two types of go karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $720,000 100,000 parts Inspecting product 995,000 1,500 batches Processing purchase orders 200,000 700 orders Paying suppliers 270,000 500 invoices Insuring the factory 395,000 40,000 square feet Designing packaging 170,000 2 models Required: 1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January of this year, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate. Complete this questlon by enterlng your answers In the tabs below. Required 1 Required 2 Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. Exercise 17-3 Computing plantwide overhead rates LO P1 Xie Company identied the following activities, costs, and activity drivers for this year. The company manufactures two types of g karts: Deluxe and Basic. Activity Expected Costs Handling materials $720,000 Inspecting product 995,000 Processing purchase orders 200,000 Paying suppliers 270,000 Insuring the factory 395,000 Designing packaging 170,000 Required: Expected Activity 100,000 1,500 700 500 40,000 2 parts batches orders invoices square feet models 1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. In January ofthis year. the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. Assign overhead costs to each model using the single plantwide overhead rate. Complete this question by entering your answers In the tabs below. Required 1 Required 2 :In January of this year, the Deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor Ehours. Assign overhead costs to each model using the single plantwide overhead rate. (Round "0H cost" answers to 2 decimalE Exercise 17-4 Computing overhead rates under ABC LO P3 Xie Company identied the following activities, costs, and activity drivers for this year. The company manufactures two types of go karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $695,000 100,000 parts Inspecting product 970,000 1,500 batches Processing purchase orders 175,000 700 orders Paying suppliers 245,000 500 invoices Insuring the factory 370,000 40,000 square feet Designing packaging 145,000 2 models Required: Compute the activity rate for each activity, assuming the company uses activitybased costing. (Round activity rate answers to 2 decimal places.) Inspecting product 970,000 1,500 batches __ Processing orders 175,000 700 orders _ _ Insuring factory 370,000 40,000 square feet _ _ Designing packaging 145,000 2 models _ _ 2,600,000 Exercise 17-5 Assigning costs using ABC LO P3 Xie Company identied the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Expected Costs Expected Activity Handling materials $635,000 100,000 parts Inspecting product 910,000 1,500 batches Processing purchase orders 115,000 700 orders Paying suppliers 185,000 500 invoices Insuring the factory 310,000 40,000 square feet Designing packaging 85,000 2 models Assume that the following information is available for the com pa ny's two products for the rst quarter of this year. Deluxe Model Basic Model Production volume 10,000 units 30,000 units Parts required 20,000 parts 30,000 parts Batches made 250 batches 100 batches Purchase orders 50 orders 20 orders Invoices 50 invoices 10 invoices Space occupied 10,000 sq. ft. 7,000 sq. ft Models 1 model 1 model Required: Compute activity rates for each activity and assign overhead costs to each product model using activity-based costing (ABC). What is the overhead cost per unit of each model? (Round activity rate and average OH cost per unit answers to 2 decimal places.) Handling materials Inspecting product Processing orders Paying suppliers Insuring factory Designing packaging _ Exercise 17-8 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company prod uces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rate" answers to 2 decimal places.) Process Activity Overhead Cost Driver Quantity Components Changeover $457,000 Number of batches 790 Machining 301,400 Machine hours 7,730 Setups 226,500 Number of setups 160 $984,900 Finishing Welding $181,100 Welding hours 4,800 Inspecting 229,000 Number of inspections 345 Rework 60,950 Rework orders 230 $411,050 Support Purchasing $134,500 Purchase orders 488 Providing space 30,900 Number of units 5,400 Providing utilities 60,180 Number of units 5,400 $ 225,530 , Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,800 3,600 Welding hours 2,000 2,800 Batches 395 395 Number of inspections 500 345 Machine hours 2,330 5,400 Setups 80 80 Rework orders 130 100 Purchase orders 325 163 l Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $220 for Model 145 and $150 for Model 212. Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $760 and the market price for Model 212 is $500, determine the profit or loss per unit for each model. Model 145 Model 212 Market priceExercise 17-9 Using departmental overhead rates to assess prices LO P2 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantity Components Changeover $ 476,000 Number of batches 750 Machining 302,000 Machine hours 8,160 Setups 225,000 Number of setups 100 $1,003,000 Finishing Welding $ 188,000 Welding hours 4,800 Inspecting 230,000 Number of inspections 830 Rework 64,000 Rework orders 250 $ 482,000 Support Purchasing $ 135,000 Purchase orders 507 Providing space 36,000 Number of units 5,140 Providing utilities 63,000 Number of units 5,140 $ 234,000 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,100 3,040 Welding hours 800 4,000 Batches 375 375 Number of inspections 520 310 Machine hours 2,850 5,310 Setups 50 50 mekoMem B0 H0 Purchase orders 338 169 l Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $120 for Model 212. 3. If the market price for Model 145 is $2,150 and the market price for Model 212 is $260, determine the prot or loss per unit for each model. Complete thls questlon by enterlng your answers In the tabs below. Required 1 Required 2 Required 3 Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the nishing department. Assign costs to the support department based on number of purchase orders. (Round your intermediate calculations and per unit cost answers to 2 decimal places.) Components department Finishing department Support department Model 145 Activity Departmental Driver OH Rate Total Overhead Cost Components Finishing Support Model 212 Activity Departmental Driver OH Rate Total Overhead Cost Components Finishing SupportComplete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $120 for Model 212. (Round your intermediate calculations and cost per unit answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If the market price for Model 145 is $2,150 and the market price for Model 212 is $260, determine the profit or loss per unit for each model. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Model 145 Model 212 Market price per unit Cost per unit Profit (loss) per unit