Activity Based And Department Rate Product Casting and Product Cost Distortions Black and Blue Sports Inc manufactures two products snowboards and skils. The factory overhead incurred is as follows: Indirect labor Cutting Department Finishing Department Total $507,000 156,000 192,000 5855,000 The activity bose associated with the two production departments is direct labor hours. The Indirect labor can be assigned to two different activities as follows: Activity Production control Budgeted Activity Cost $237,000 270,000 $507,000 Activity Base Number of production runs Number of moves Materials handling Total The activity base usage quantities and units produced for the two products Follow Number of Production Runs Direct Labor Hours-Cutting Number of Hoves 5,000 Units Produced Direct Labor Hours: Finishing 2.000 4,000 6,000 Snowboards 430 70 4,000 2,000 6.000 2,500 6,000 6,000 12,000 Total 500 7,500 NONE Required: 1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. Round per unit amounts to the nearest whole cent. Department Production Department Rate Cutting Department per direct labor hour Finishing Department per direct labor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). Round per unit amounts to the nearest whole cent. Product Total Factory Overhead Factory Overhead Per Unit Snowboards skis 3. Determine the city rates, assuming that the Indirect labor is associated with activities rather than with the production departments, Round per unit amounts to the nearest whole cent. Activity Activity Rate Production Control per prod. run Material Handling per move Cutting Department per di Finishing Department per din 4. Determine the total and per-unit cost assigned to each product under activity-based costing Round the per unit amounts to the nearest whole cent. Product Total Activity Cost Activity Cost Per Unit Snowboards Sids 5. Comment on the difference in the per unit overhead allocated to each product under the multiple production department factory overhead rate and activity based conting methods The activity based overhead allocation reveals that consume more factory overhead on per-unit oasis than do The Next Next > Oreck My Work 2goNOW2 Online Taching and learning resource from Cengage ellook Printem MS Word Department Production Department Rate Cutting Department per direct labor hour Finishing Department per direct labor hour 2. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). Round per unit amounts to the nearest whiple cent. Product Total Factory Overhead Factory Overhead Per Unit Snowboards Skis 3. Determine the activity rates, assuming that the Indirect labor is associated with activities rather than with the production departments Round per unit amounts to the nearest whole cent. Activity Activity Rate Production Control per prod, run Material Handling per move Cutting Department per dith Finishing Department per din 4. Determine the total and per unit cost assigned to each product under activity med costing, Round the per unit amounts to the nearest whole cent. Product Total Activity Cost Activity Cost Per Unit Snowboards Skis S. Comment on the difference in the per-unit ovechand allocated to each product under the multiple production department factory overhand rate and activity-based costing methods The activity based overhead allocation reveals that consume more factory overhead on a per unit bass than do The method method does not show this because all factory overhead is assumed to be proportional to direct labor hours. The separately accounts for the production control and materials handling activity costs, Snowboards have more production control and materials handling activities than do skls. This is because snowboards are made in smallerlots, representing a wide variety of styles. Thus, snowboards have higher activity costs per unit than skis Next > Check My Work Email Instructor Save and tu Submit Assignment for Grading