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4-4 Contrast ABC ana conventional Product COSTS (L04-4] Pacifica Industrial Products Corporation makes two products Product Hand Product L Product His expected to sell 35,000
4-4 Contrast ABC ana conventional Product COSTS (L04-4] Pacifica Industrial Products Corporation makes two products Product Hand Product L Product His expected to sell 35,000 units next year and Product Lis expected to sell 7,000 units. A unit of either product requires 0.7 direct labor-hours The company's total manufacturing overhead for the year is expected to be $2.499,000 Required: 4-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product? b. Compute the total amount of overhead cost that would be applied to each product 2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product level cost. The total manufacturing overhead would be divided in half between the two products with $1249.500 assigned to Product H and $1,249,500 assigned to Product L. this suggestion is followed, how much overhead cost per unit would be assigned to each product? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2 The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to cach product (Round your answers to 2 decimal places) Product Product L verhead cost per unit Reg 10 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Compute the total amount of overhead cost that would be applied to each product. Product H Product L Total Total overhead cost Reg 1A Reg 1B Reg 2 Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $1,249,500 assigned to Product H and $1,249,500 assigned to product If this suggestion is followed, how much overhead cost per unit would be assigned to each product? (Round your answers to 2 decimal places.) Show less Product Product L Overhond cost per unit
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