Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Activity following data for two products of Vigano Manufacturing. Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials
Activity following data for two products of Vigano Manufacturing. Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Units produced Direct materials cost Direct labor cost Direct labor hours. Budgeted Cost Activity Driver $13,000 (20 machine setups) 10, 400 (16,000 parts) 15,600 (100 inspections) $ 39,000 Product A 1,300 units $ 23 per unit $ 43 per unit 2 per unit Product B. 260 units $ 33 per unit $ 53 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 3.250 direct labor hours, compute the total product cost per unit for each 2. Consider the following additional information about these two products. If activity-based costing is used to allocate ow (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost each, and (c) compute product cost per unit for each Actual Activity Usage Setups Parts Inspections Product A B setups Product B 12 setups 10, 000 parts 6,000 parts 40 inspections 60 inspections Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 3,250 direct labor hours, compute the total product cost per unit for each product. Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Required 1 Required 2 Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) a. Compute overhead activity rates Machine setup Parts handling Activity Quality inspection Activity Rate per setup per part per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Activity Machine setup Parts handling Quality inspection Total allocated cost Units produced Overhead cost per unit Allocated Cost Product A Product B c. Product cost per unit using activity-based costing. Per Unit Product A Product B Product Cost per Unit Required 1 0 $ Units produced 1,300 units 260 units Direct materials cost Direct labor cost $ 23 per unit $ 33 per unit $ 43 per unit 2 per unit $ 53 per unit 2.50 per unit Direct labor hours 1. Using a plantwide overhead rate based on 3,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. Actual Activity Usage Product A 8 setups Product B 12 setups 6,000 parts 48 inspections 60 inspections 10,000 parts Setups Parts Inspections Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using a plantwide overhead rate based on 3,250 direct labor hours, compute the total product cost per unit for each product. Per Unit Product A Direct Materials Direct Labor Overhead Product B Product Cost per Unit
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