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4 Heidelberg Fabrication manufactures two products, G-09 and G-35: G-89 Units produced 18,900 G-35 3,780 Direct materials cost per unit $7 $ 19 Machine-hours
4 Heidelberg Fabrication manufactures two products, G-09 and G-35: G-89 Units produced 18,900 G-35 3,780 Direct materials cost per unit $7 $ 19 Machine-hours per unit 4 7 Production runs per quarter 144 72 Part 1 of 2 18 points cos Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow Machine depreciation Setup Labor Materials handling Total $ 102,060 51,030 40,824 $193,914 eflook References Required: a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling $ 1.90 per machine hour per machine hour per production run % direct material cost 5 Heidelberg Fabrication manufactures two products, G-09 and G-35: G-09 Units produced 18,900 G-35 3,780 Direct materials cost per unit $7 Machine-hours per unit 4 $ 19 7 Production runs per quarter 144 72 Part 2 of 2 18 points Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow Machine depreciation Setup Labor Materials handling Total $ 102,060 51,030 40,824 $193,914 00:54:25 wBook References Required: a.Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Using current costing system b. Using proposed ABC system Unit Cost G-09 035)
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