2. Is product Wa profitable product for Gigabyte, Inc.? 4. Gigabyte's controller, Nan O'Second, recently attended a conference at which activity-based costing systems were discussed. She became convinced that such a system would help Gigabyte's management to understand its product costs better. She got top management's approval to design an activity-based costing system, and an ABC project team was formed. In stage one of the ABC project, each of the overhead items listed in the overhead budget was placed into its own activity cost pool. Then a cost driver was identified for each activity cost pool. Finally,, the ABC project team compiled data showing the percentage of each cost driver that was consumed by each of Gigabyte's product lines. These data are summarized as follows: Activity Cost Pool Machine setup Machinery Inspection Material handling Engineering Cost Driver Product G Product T Product W Number of setups Machine hours 20% 30% 50% 25% 50% 25% Number of inspections Raw-material costs 45% 40% 15% 258 69% 68 35 Number of change orders 55 10% Show how the controller determined the percentages given above for raw-material costs. 5. Develop product costs for the three products on the basis of an activity-based costing system 6. Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. Required information The following information applies to the questions displayed below.] Knickknack, Inc. manufactures two products: Odds and Ends. The firm uses a single, plantwide overhead rate based on direct-labor hours. Production and product-costing data are as follows: Odds 1,000 units Ends Production quantity Direct material Direct labor (not including setup time) Manufacturing overhead 5,000 units 40 60 45 (3 hr at $15) 30 (2 hr. at $15) 96 (2 hr. at $48) 144 (3 hr. at $48) 166 249 Total cost per unit Manufacturing overhead budget: Machine-related costs $450,000 180,000 90,000 96,000 Setup and inspection Engineering Plant-related costs $816,000 Total Predetermined overhead rate: Budgeted manufacturing overhead $816,000 = $48 per direct-labor hour Budgeted direct-labor hours (1,000) (2) + (5,000) (3) 6. Show that the ABC system fully assigns the total budgeted manufacturing overhead costs of $816,000. (Round your intermediate calculations and final answers to 2 decimal places.) Odds Ends Manufacturing overhead costs per unit Machine-related Setup and inspection Engineering Plant-related 0.00 Total overhead cost per unit 0.00 $ Production volume Total overhead assigned 0.00 $ 0.00 Total S 0 Show how the controller determined the percentages given above for raw-material costs. 5. Develop product costs for the three products on the basis of an activity-based costing system. 6. Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 5 Required 1 Required 6 Show how the controller determined the percentages given in requirement 4 for raw-material costs. (Round Percentage of Total Raw-Material Cost to the nearest whole percentage. Round other answers to 2 decimal places.) Percentage of Total Raw- Raw-Material Cost per Unit Annual Annual Raw- Product Material Cost Volume Material Cost G T W Total Required 2 Required 5 Complete this question by entering your answers in the tabs below. Required 1 Required 4 Required 2 Required 5 Required 6 Develop product costs for the three products on the basis of an activity-based costing system. (Round intermediate and final answers to 2 decimal places.) Product G Product T Product W Direct material Direct labor Machine setup Machinery Inspection Material handling Engineering Total Required 6 Required 4 Show how the controller determined the percentages given above for raw-material costs. 5. Develop product costs for the three products on the basis of an activity-based costing system. 6. Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. (Round your intermediate calcu lations and final answers to 2 decimal places.) Product G Product T Product W Target price based on new product costs Required 6> Required 5 2. Is product Wa profitable product for Gigabyte, Inc.? 4. Gigabyte's controller, Nan O'Second, recently attended a conference at which activity-based costing systems were discussed. She became convinced that such a system would help Gigabyte's management to understand its product costs better. She got top management's approval to design an activity-based costing system, and an ABC project team was formed. In stage one of the ABC project, each of the overhead items listed in the overhead budget was placed into its own activity cost pool. Then a cost driver was identified for each activity cost pool. Finally,, the ABC project team compiled data showing the percentage of each cost driver that was consumed by each of Gigabyte's product lines. These data are summarized as follows: Activity Cost Pool Machine setup Machinery Inspection Material handling Engineering Cost Driver Product G Product T Product W Number of setups Machine hours 20% 30% 50% 25% 50% 25% Number of inspections Raw-material costs 45% 40% 15% 258 69% 68 35 Number of change orders 55 10% Show how the controller determined the percentages given above for raw-material costs. 5. Develop product costs for the three products on the basis of an activity-based costing system 6. Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. Required information The following information applies to the questions displayed below.] Knickknack, Inc. manufactures two products: Odds and Ends. The firm uses a single, plantwide overhead rate based on direct-labor hours. Production and product-costing data are as follows: Odds 1,000 units Ends Production quantity Direct material Direct labor (not including setup time) Manufacturing overhead 5,000 units 40 60 45 (3 hr at $15) 30 (2 hr. at $15) 96 (2 hr. at $48) 144 (3 hr. at $48) 166 249 Total cost per unit Manufacturing overhead budget: Machine-related costs $450,000 180,000 90,000 96,000 Setup and inspection Engineering Plant-related costs $816,000 Total Predetermined overhead rate: Budgeted manufacturing overhead $816,000 = $48 per direct-labor hour Budgeted direct-labor hours (1,000) (2) + (5,000) (3) 6. Show that the ABC system fully assigns the total budgeted manufacturing overhead costs of $816,000. (Round your intermediate calculations and final answers to 2 decimal places.) Odds Ends Manufacturing overhead costs per unit Machine-related Setup and inspection Engineering Plant-related 0.00 Total overhead cost per unit 0.00 $ Production volume Total overhead assigned 0.00 $ 0.00 Total S 0 Show how the controller determined the percentages given above for raw-material costs. 5. Develop product costs for the three products on the basis of an activity-based costing system. 6. Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 5 Required 1 Required 6 Show how the controller determined the percentages given in requirement 4 for raw-material costs. (Round Percentage of Total Raw-Material Cost to the nearest whole percentage. Round other answers to 2 decimal places.) Percentage of Total Raw- Raw-Material Cost per Unit Annual Annual Raw- Product Material Cost Volume Material Cost G T W Total Required 2 Required 5 Complete this question by entering your answers in the tabs below. Required 1 Required 4 Required 2 Required 5 Required 6 Develop product costs for the three products on the basis of an activity-based costing system. (Round intermediate and final answers to 2 decimal places.) Product G Product T Product W Direct material Direct labor Machine setup Machinery Inspection Material handling Engineering Total Required 6 Required 4 Show how the controller determined the percentages given above for raw-material costs. 5. Develop product costs for the three products on the basis of an activity-based costing system. 6. Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 5 Required 6 Based on your answers in the above requirement, calculate a target price for each product, using Gigabyte's pricing formula. (Round your intermediate calcu lations and final answers to 2 decimal places.) Product G Product T Product W Target price based on new product costs Required 6> Required 5