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2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A:
2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A: Model B: $ $ overhead cost per unit. overhead cost per unit. Note: Be sure to complete both tables below. with a rate of $0.90 per direct labor hour. The consumption of these two drivers is as follows: ModelB170,000270,000 Compute the overhead cost per unit for each product by using departmental rates. (Round to two decimal places.) Model A: $ per unit Model B: $ per unit than the plantwide rate? A common justification is to use hours for machine-intensive departments and hours for labor-intensive departments. Using activity-based costs as the standard, we can say the department rates the accuracy of the overhead cost assignment for both products and were less accurate than the plantwide rates. The departmental rates cost A well the ABC method while the plantwide rate costs Product A well the ABC method. The departmental rates are not dramatically more wrong then the plantwide rate; however, they are wrong in a direction. The departmental rates do better than the plantwide rates. Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing more popular of the two speakers. The following data has been gathered for the two products: Required: Download Excel spreadsheet 1. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Round to two decimal places.) Plantwide rate: $ per DLH. Model A: \$ overhead cost per unit. Model B: $ overhead cost per unit
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