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Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Budgeted Cost Activity Driver $ 21,000 (20 machine setups) 16,800 (16,000 parts)

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Activity Machine setup Parts handling Quality inspections Total budgeted overhead Unit Information Budgeted Cost Activity Driver $ 21,000 (20 machine setups) 16,800 (16,000 parts) 25,200 (100 inspections) $ 63,000 Product A 2,100 units Product B 420 units $ 41 per unit Units produced 5 Direct materials cost Direct labor cost $ 31 per unit $ 51 per unit 2 per unit $ 61 per unit 2.50 per unit Direct labor hours 1. Using a plantwide overhead rate based on 5,250 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 Setups Parts Product A 8 setups 10,000 parts 40 inspections Product B 12 setups 6,000 parts Inspections 60 inspections Complete this question by entering your answers in the tabs below. Required 1 Required 2

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Required 1 To compute the total product cost per unit for each product using a plantwide overhead rate we need to divide the total budgeted overhead by the total direct labor hours Total budgeted over... blur-text-image

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