#1. The Phoenix plant produces two calculators (regular and deluxe) and has two production departments: assembly and packaging. Information for the products is given below:

	Deluxe	Regular	Total
Units Produced	20,000 units	200,000 units
Sales Revenue	$440,000	$2,400, 000	$2,840,000
Prime Costs	$190,000	$1,500,000	$1,690,000

The following table presents information about cost drivers by department and product:

	Deluxe	Regular	Total
Direct Labor hours:
Assembly department	23,000	137,000	160,000
Packaging Departent	7,000	13,000	20,000
Total	30,000	150,000	180,000
Machine hours:
Assembly Department	2,000	8,000	10,000
Packaging Department	22,000	58,000	80,000
Total	24,000	66,000	90,000
Number of setups	40	80	120
Inspection hours	4,000	21,000	25,000
Numbers of moves	75	125	200

Overhead costs by department, activity and in total:

Activity	Assembly Dept.	Packaging Dept.	Total
Setting up equipment	$120,000	$120,000	$240,000
Moving Material	$50,000	$50,000	$100,000
Machining	$193,000	$32,000	$225,000
Inspection	$141,000	$14,000	$155,000
	$504,000	$216,000	$720,000

Required:

- Single plant- wide rate:

a. Compute the predetermined plant-wide overhead rate based on direct labor hour.

b.Calculate the total and per unit cost of each product if a plant- wide overhead rate is used.

- Department Rates:

a. compute the predetermined overhead rate for each department if Assembly uses labor hours and packaging uses machine hours.

b. calculate the total per unit cost for each product if department overhead rates are used.

- Activity based costing:

a. calculate the overhead rates for each overhead activity.

b. calculate the total and per unit of each product if activity rates are used to assign overhead.

- Identify any product over/ under- costing.