38 Des Required information Tableau DA 17-3 (Static): Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 Chrom Company manufactures two models, the XL and RD, It also has two departments, Assembly and Finishing The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Machine Hours by Department Department 150,000 h... 125,000 h... 100,000 h... Finishing Total: 75,000 hrs Assembly Department Machine Hours by Department 150,000 h... 125,000 h... Finishing Total: $8,000,000 100,000 h... 75,000 hrs Assembly Assembly 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours 12 ces Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Required 2A Required 28 Required 3 Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit c hours and 3 machine hours. Compute the overhead cost per unit of each model using ABC Activity Maintenance Supervision Totals Units produced Overhead cost per unit XL RD Activity Usage Activity Rate Allocated cost Activity Usage Activity Rate Allocated MH per MH MH per MH DLH per DLH DLH per DLH Banded 30. Required 2A Required 28 Required 3 Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. Compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Model XL Activity Usage Plantwide OH Rate OH Cost Per Unit DLH RD DLH < Required 2A Required 3 > Required 2A Required 2B Required 3 21 The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? ces < Required 2B Required 3>