1) Plantwide overhead rate = total overhead/ direct labor hours
=520,000/(7000+5000+8000)
		26	per DLH
2) Amount of manufacturing overhead allocated
			A	B	C	total
direct labor hours			7000	5000	8000
Direct labor hr rate			26	26	26
total allocated			182000	130000	208000	520000
3)total product cost			A	B	C	total
Direct materials			75,000	30,000	1,00,000	2,05,000
Direct labor			60,000	40,000	70,000	1,70,000
overhead cost			182000	1,30,000	2,08,000	520000
total product cost (a)			3,17,000	2,00,000	3,78,000
4)total product cost per unit
total product cost (a)			3,17,000	2,00,000	3,78,000
finished units (b)			12,000	8,000	7,000
unit product cost a/b			26.42	25	54
5)Overhead activity rate
			amount	base	rate
Machining			1,50,000	32,000	4.69
Machine setups			1,00,000	280	357.14
Machine maintenance			20,000	32000	0.63
Inspection			50,000	31000	1.61
General Factory costs			2,00,000	20000	10.00
total			5,200,000
6)overhead cost assgined
			A	B	C	total
Machining			32813	23438	93750	150000
Machine setups			21429	25000	53571	100000
Machine maintenance			4375	3125	12500	20000
Inspection			12903	16129	20968	50000
General Factory costs			70000	50000	80000	200000
total			141519	117692	260789	520000
7)total product cost
Direct materials			75,000	30,000	1,00,000	2,05,000
Direct labor			60,000	40,000	70,000	1,70,000
total overhead cost			141519	117692	260789	520000
total product cost			276,519	187,692	430,789	895,000
8)per unit
total product cost			2,76,519	1,87,692	4,30,789	8,95,000
units			12000	8000	7000
per unit			23.04	23.46	61.54

1. Suppose the Total Activity Cost Pool for the Inspection Activity is $20836 and Products A, B and C have the following direct labor hours. What is the traditional plant wide overhead rate?

	Product A	Product B	Product C
Direct Labor Hours	7829	8775	5157

2. What is total product cost for all units of Product C using a traditional plant-wide overhead rate system using the following inputs

Change:

Total Cost Pool for Machining = $141201

Total Cost Pool for Inspection = $47523

Number of DL hours for Product A = 5470

Number of DL hours for Product B = 6069

Number of DL hours for Product C = 7450

3. What is the total overhead allocated to Product A under Activity Based Costing if:

General Factory Costs are	$197111
	Product A	Product B	Product C
Number of Setups	86	84	87
Machine hours	7029	6974	9697

4. Compute total cost for Product C using Activity Based Costing using the following data

Inspection Pool Costs	$45234
	Product A	Product B	Product C
Machine Hours	13107	9497	12008
DL HOURS	9074	6742	7218
Direct Material Costs	$56886	$76740	$92519

5. What is Cost per unit for Product B under Activity Based Costing if:

Machine Setup Pool Costs	$109691
	Product A	Product B	Product C
Number of Inspections	8263	7376	10643
Units produced	7341	8024	9236