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A manufacturer reports the following for its two products: Product 1 and Product 2. Product 1 requires 2 direct labor hours per unit and Product
A manufacturer reports the following for its two products: Product 1 and Product 2. Product 1 requires 2 direct labor hours per unit and Product 2 requires 3 direct labor hours per unit. The company budgets 5,420 direct labor hours to be used, based on expected production of 2,080 units of Product 1 and 420 units of Product 2. Actual Activity Driver Usage Product 1 Product 2 Setups Parts Inspections Enter answers in the tabs below. Use a plantwide overhead rate based on 5,420 direct labor hours to compute the overhead cost per unit for each product. Note: Do not round intermediate calculations. Round your final answers to 2 decimals. Assignment (i) Product 2 requires 3 direct labor hours per unit. The company budgets 5,420 direct labor hours to be used, based on expected production of 2,080 units of Product 1 and 420 units of Product 2. Enter answers in the tabs below. Use activity-based costing to a) compute overhead activity rates, and b) allocate overhead cost to each product and compute overhead cost per unit for each product. Note: Do not round intermediate calculations. Round the final answers to 2 decimals
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