ACom develops software for intemet applications. The market is very competitive, and ACom's competitors continue to ACom has just hired Nicole Merrell, a recent university graduate in accounting. Merrell asks Software Department ntroduce new products at low prices. ACom offers a wide variety of software from simple programs that enable new Manager Jeff Gire to join her in a pilot activity based costing study. Merrell and Gire identify the following activities users to create personal webpages to complex commercial search engines. Like most software companies, ACom's raw related costs, and cost-allocation bases: material costs are insignificant. (Click the icon to view the information.) Requirements Requirement 1. Compute the cost allocation rate for each activity. Information Determine the formula and then compute the cost allocation rate for each activity. (Round your answers to the nearest cent.) Activity overhead rate 400000 application Total assets 16000DD 2400000 2B8000 Cost allocation base (actual) Appl. Dev Content prod. Estimated Indirect Activity Costs Estimated Quantity of Allocation Base Allocation 0.13 160 Activity Applications development . . . $ Content production 18000000 Base 1,600,000 New applications 2,400,000 Lines of code 18 million lines 1800 4 new applications Requirement 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit of X-Page and X-Secure. (Hint: Compute the cost per unit to the nearest cent.) 288,000 Testing hours 1,800 testing hours $4,288,000 X-Page X-Secure Total indirect costs Applications development Content production Testing Total costs Number of unils Per unit cost 400000 65000 16000 481000 30000 16.03 400DD0 975000 96000 1471000 ACom is planning to develop the following new applications: X-Page-software for developing personal webpages X-Secure commercial security and firewall software X-Page requires 500,000 lines of code and 100 hours of testing, while X-Secure requires 7.5 million lines of code and 600 hours of testing. ACom expects to produce and sell 30,000 units of X-Page and 10 units of X-Secure. 147100 Print Done ACom develops software for intemet applications. The market is very competitive, and ACom's competitors continue to ACom has just hired Nicole Merrell, a recent university graduate in accounting. Merrell asks Software Department ntroduce new products at low prices. ACom offers a wide variety of software from simple programs that enable new Manager Jeff Gire to join her in a pilot activity based costing study. Merrell and Gire identify the following activities users to create personal webpages to complex commercial search engines. Like most software companies, ACom's raw related costs, and cost-allocation bases: material costs are insignificant. (Click the icon to view the information.) Requirements Requirement 1. Compute the cost allocation rate for each activity. Information Determine the formula and then compute the cost allocation rate for each activity. (Round your answers to the nearest cent.) Activity overhead rate 400000 application Total assets 16000DD 2400000 2B8000 Cost allocation base (actual) Appl. Dev Content prod. Estimated Indirect Activity Costs Estimated Quantity of Allocation Base Allocation 0.13 160 Activity Applications development . . . $ Content production 18000000 Base 1,600,000 New applications 2,400,000 Lines of code 18 million lines 1800 4 new applications Requirement 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit of X-Page and X-Secure. (Hint: Compute the cost per unit to the nearest cent.) 288,000 Testing hours 1,800 testing hours $4,288,000 X-Page X-Secure Total indirect costs Applications development Content production Testing Total costs Number of unils Per unit cost 400000 65000 16000 481000 30000 16.03 400DD0 975000 96000 1471000 ACom is planning to develop the following new applications: X-Page-software for developing personal webpages X-Secure commercial security and firewall software X-Page requires 500,000 lines of code and 100 hours of testing, while X-Secure requires 7.5 million lines of code and 600 hours of testing. ACom expects to produce and sell 30,000 units of X-Page and 10 units of X-Secure. 147100 Print Done