4. Our company makes and sells two products X13 and 724. We have always used a traditional reporting system, with a single overhead rate based on direct labor hours (DLH). For 2019, our estimated unit costs using this traditional system were $69.15 per unit of X13 and 5126 30 per unit of Z24 Early in 2019, we decided to experiment with enhancing our reporting and implement an activity-based costing (ABC) system with four activity cost pools. We decided to allocate all overhead costs to units Selected information is available about our products, the four activity cost pools, and the activity measures to allocate the cost of cach cost pool (some number we omitted Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $275,000 2 MHS Machine setups Number of setups $210,000 2 setups Product design Number of products S48.000 products Order size Direct labor-hours ? DLHS Product X13 Product 224 Per unit direct materials cost $17.50 $23.00 Per unit direct labor cost $10.00 $20.00 In total for product line for 2019 Units 12,000 4,000 Machine hours 5.000 6,000 Number of setups 220 130 Direct labor hours 6,000 4.000 4.1 15 points What is the level in the hierarchy of costs for each of the cout poole? Machining: Machine stupe Product design Order 42110 points compute the estimated 2019 unit come of our two perdists wing the ABC wywem 43. An emalsuant is concerned that our ABC system will meet wolve theme her of the dialystem. Explain why the proposed ABC ye may be entire solve this 4. Our company makes and sells two products X13 and 724. We have always used a traditional reporting system, with a single overhead rate based on direct labor hours (DLH). For 2019, our estimated unit costs using this traditional system were $69.15 per unit of X13 and 5126 30 per unit of Z24 Early in 2019, we decided to experiment with enhancing our reporting and implement an activity-based costing (ABC) system with four activity cost pools. We decided to allocate all overhead costs to units Selected information is available about our products, the four activity cost pools, and the activity measures to allocate the cost of cach cost pool (some number we omitted Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $275,000 2 MHS Machine setups Number of setups $210,000 2 setups Product design Number of products S48.000 products Order size Direct labor-hours ? DLHS Product X13 Product 224 Per unit direct materials cost $17.50 $23.00 Per unit direct labor cost $10.00 $20.00 In total for product line for 2019 Units 12,000 4,000 Machine hours 5.000 6,000 Number of setups 220 130 Direct labor hours 6,000 4.000 4.1 15 points What is the level in the hierarchy of costs for each of the cout poole? Machining: Machine stupe Product design Order 42110 points compute the estimated 2019 unit come of our two perdists wing the ABC wywem 43. An emalsuant is concerned that our ABC system will meet wolve theme her of the dialystem. Explain why the proposed ABC ye may be entire solve this
