Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Activity Cost Pool Purchasing Processing Scrap/rework Shipping Activity Measure Purchase orders issued Machine-hours Scrap/rework orders issued Number of shipments Estimated Overhead Cost $ 233,700 2,475,000
Activity Cost Pool Purchasing Processing Scrap/rework Shipping Activity Measure Purchase orders issued Machine-hours Scrap/rework orders issued Number of shipments Estimated Overhead Cost $ 233,700 2,475,000 562,275 1,033,500 $4,304,475 Activity Measure Purchase orders issued Machine-hours Scrap/rework orders issued Number of shipments Expected Activity Deluxe Regular Total 410 820 1,230 18,000 27,000 45,000 425 340 765 6,360 9,540 15,900 Determine the predetermined overhead rate for each of the four activity cost pools. 3. Using the predetermined overhead rates you computed in part (2), do the following: a. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. b. Compute the unit product cost of each model (direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Req Req 3B Using direct labor-hours as the base for assigning manufacturing overhead cost to products, compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Activity Cost Pool Purchasing Processing Scrap/rework Shipping Activity Measure Purchase orders issued Machine-hours Scrap/rework orders issued Number of shipments Estimated Overhead Cost $ 233,700 2,475,000 562,275 1,033,500 $4,304,475 Activity Measure Purchase orders issued Machine-hours Scrap/rework orders issued Number of shipments Expected Activity Deluxe Regular Total 410 820 1,230 18,000 27,000 45,000 425 340 765 6,360 9,540 15,900 Determine the predetermined overhead rate for each of the four activity cost pools. 3. Using the predetermined overhead rates you computed in part (2), do the following: a. Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based absorption costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each model. b. Compute the unit product cost of each model (direct materials, direct labor, and manufacturing overhead). Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Req Req 3B Using direct labor-hours as the base for assigning manufacturing overhead cost to products, compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started