Activity$-$Based Costing

Steampunk Corporation has the following predicted indirect costs and cost drivers for the year for the given activity cost pools:

Fabrication

Department Finishing

Department Cost Driver

Maintenance $ $42,00021,000$ Machine hours

Materials handling $63,00031,500$ Material moves

Machine $147,00010,500$ Machine setups

Inspections $-52,500$ Inspection hours

Total $ $252,000$ $ $115,500$

The following activity predictions were also made for the year:

Fabrication

Department Finishing

Department

Machine hours $5,0002,500$

Material moves $1,500750$

Machine setups $35025$

Inspection hours $-500$

It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW$100$ and SG$150.$ The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates of activity$-$based rates. The production manager has provided the following data for the production of a batch of $100$ units for each of these models:

SW$100$ SG$150$

Direct materials cost $ $14,000$ $ $21,000$

Direct labor cost $ $5,600$ $ $4,200$

Machine hours $($Fabrication$)250350$

Machine hours $($Finishing$)10050$

Materials moves $2040$

Machine setups $510$

Inspection hours $1530$

a$.$ Determine the cost of one unit each of SW$100$ and SG$150,$ assuming a company$-$wide overhead rate is used based on total machine hours.

Round rate to two decimal places.

Overhead rate based on total machine hours: $Answer

$0$

per machine hour

Use rounded overhead rate calculated about for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places.

Product Costs per Unit SW$100$ SG$150$

Direct materials Answer

$0$

Answer

$0$

Direct labor Answer

$0$

Answer

$0$

Manufacturing overhead Answer

$0$

Answer

$0$

Total cost per batch Answer

$0$

Answer

$0$

Number of units per batch Answer

$0$

Answer

$0$

Cost per unit Answer

$0$

Answer

$0$

b$.$ Determine the cost of one unit of SW$100$ and SG$150,$ assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments.

Round to two decimal places, if applicable.

Overhead rate based on machine hours for Fabrication Dept.: $Answer

$0$

per machine hour.

Overhead rate based on machine hours for Finishing Dept.: $Answer

$0$

per machine hour.

Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.

Product Costs per Unit SW$100$ SG$150$

Direct materials Answer

$0$

Answer

$0$

Direct labor Answer

$0$

Answer

$0$

Manufacturing overhead:

Fabrication Dept. Answer

$0$

Answer

$0$

Finishing Dept.

Answer

$0$

Answer

$0$

Total cost per batch

Answer

$0$

Answer

$0$

Number of units per batch Answer

$0$

Answer

$0$

Cost per unit

Answer

$0$

Answer

$0$

c$.$ Determine the cost of one unit of SW$100$ and SG$150,$ assuming activity$-$based overhead rates are used for maintenance, materials handling, machine setup, and inspection activities.

Round rate to two decimal places, if applicable.

Activity$-$based overhead rates:

Maintenance Answer

$0$

Materials handling Answer

$0$

Machine setup Answer

$0$

Inspection activities Answer

$0$

Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed.

Product Costs per Unit SW$100$ SG$150$

Direct materials Answer

$0$

Answer

$0$

Direct labor Answer

$0$

Answer

$0$

Manufacturing overhead:

Maintenance activity Answer

$0$

Answer

$0$

Materials handling activity Answer

$0$

Answer

$0$

Machine setups activity Answer

$0$

Answer

$0$

Inspections activity

Answer

$0$

Answer

$0$

Total cost per batch Answer

$0$

Answer

$0$

Number of units per batch Answer

$0$

Answer

$0$

Cost per unit

Answer

$0$

Answer

$0$