66

Required information Chrom Co manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis Estimated Overhead Costs by Estimated Direct Labor Hours & Department Machine Hours by Department 150,000 h. 125.000 100,000 h Finishing 75,000 hrs Assembly Total: $8,000,000 Assembly 50,000 hrs Assembly 25,000 hrs Finishing Direct Labor Hours Finishing Machine Hours Estimated Overhead Costs by Cost Driver & Expected Usage Activity by Activity Supervision Supervision Maintenance Total: $8,000,000 2 2 any A Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. 1. Using activity based costing and data from the lower half of the dashboard, compute activity rates for both maintenance and supervision Activity cost pool Expected Costs Activity Overhead Rate Maintenance Supervision Expected Amount of Cost Driver 100,000 MH 125,000 DLH per MH por DLH 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned modell a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Activity Rate Overhead Assigned Activity Driver Incurred Overhead Assigned Activity Maintenanco Supervision Overhead Cost Per Unit per MH per DLH Activity Driver Incurred MH DLH MH DLH Required 2A Required 28 >