9:46 + VOLTE Q 77 58% A + 1582598664663_H... MANAGERIAL ACCOUNTING HANDOUT PROBLEM 7 Score Name Section Problem (10 points). Chopin Company has analyzed its manufacturing process and has determined that there are four overhead activities which affect the process. The following information relates to those activities. CHOPIN COMPANY MANUFACTURING DATA FOR MANUFACTURING OVERHEAD ACTIVITIES Activity Total Cost Activity Estimated Cost Cost Driver Driver Usage Setup 500,000 Number of setups 10,000 Ordering 280,000 Number of orders 20.000 Machining 900,000 Machine hours 60.000 Receiving 200,000 Number of parts 100.000 The company completed two jobs during the month of January. CHOPIN COMPANY MANUFACTURING INFORMATION FOR JOBS COMPLETED FOR MONTH OF JANUARY Job 324 Job 325 Direct Materials Used 25,000 $ 31.01 Direct Labor Hours Used 150 212 CHOPIN COMPANY MANUFACTURING INFORMATION FOR JOBS COMPLETED FOR MONTH OF JANUARY Job 324 Job 325 Direct Materials Used $ 25,000 31,000 Direct Labor Hours Used 150 250 Direct Labor Rate Per Hour S 11.50 $ 13.00 Units Produced 1,200 1.500 Number of Setups 35 Number of Orders placed 30 60 Machine Hours Used 250 380 Number of Parts Used 1.700 2.500 Currently, the company uses direct materials cost as the application base for manufacturing overhead. The company's normal level of activity is $1,000,000 of direct materials cost per year. REQUIRED: (1) (2) Compute the total cost and cost per unit for each job using direct materials cost as the application base for applying manufacturing overhead to the jobs Round all total costs to the nearest whole dollar and all costs per unit to the nearest cent. Compute the total cost and cost per unit for each job using the four activity cost drivers indicated to apply manufacturing overhead to the jobs. Round all total costs to the nearest whole dollar and all costs per unit to the nearest cent. Which method do you feel provides a more accurate way of charging manufacturing overhead to the jobs? Explain