Activity-based and department rate product costing and product cost distortions Instructions Amount Descriptions Factory Overhead Rates Factory Overhead Costs Instructors Black and Sue Sports Inc. manufactures two products onboards and is the factory overhead incurred is as follows: 1 Indirect labor 350700 15600000 Cutting Department 3 Finishing Department 19200000 S855000.00 The activity base associated with the two production departments is direct labor hours. The Indirect labor can be assigned to two different activities as follows: Activity Base Budgeted Activity Cost 523700000 2 Production control Number of production handing 270,000.00 Number of moves 550700000 Instructions The activity base a quantities and units produced for the two products follow Number of Number of Direct Labor Hours Direct Labor Hours Units Production Runs Moves Cutting Finishing Produced Snowboards 430 5,000 4,000 2,000 6.000 70 2.500 2.000 4,000 6,000 Total 500 7.500 6,000 8.000 12,000 Required 1. Determine the factory overhead roles under the multiple production department rate method. Assume that indirect laboris associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively 2. Determine the total and perunt factory overhead costs allocated to each product, wsing the multiple production department overhead rates in . Complete the Activity Tables for snowboards and skills 3. Determine the actr es, assuming that the Indirect laboris associated with activities rather than with the production departments 4. Determine the total and per un cost assigned to each product under activity-based costing." 5. Explain the difference in the per unit overhead alocated to each o f under the multiple production department factory overhead rate and Instructions Snowboards 430 5,000 4.000 2,000 5,000 2,500 2.000 4,000 5.000 7.500 6,000 5.00 12.000 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." 2. Determine the total and perunt factory overhead costs allocated to each product, using the multiple production department overhead rates in Complete the Activity Tables for snowboards and 3. Determine the active rates, assuming at the indirect laboris associated with activities rather than with the production departments 4. Determine the total and per-unit cost assigned to each product under activity-based costing 5. Explain the difference in the per unit overhead allocated to each product under the multiple production department factory overhead rate and activity based costing methods "Frequired, round your answers to two decimal poster to the Amount Description is provided for the exact wording of the answer choices for e ntries **# required, round your cost per unit answer to two decimal places Activity-based and department rate product costing and produc Amount criptions Factory Overhead Rat Activity Table - Snowboards Activity Table - Skis Final Q wurunen Ble owboards and skis. Amount Descriptions Cutting Department Finishing Department Production Control Materials Handling Setups Skis 197 $859 Snowboards tments is direct labor ho Budge Activity 5237 Production control Materials handling Instructions Amount Descriptions Factory Overhead Rates 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. If required, round your answers to two decimal places. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries Production Department Department Rate per direct labor hour per direct labor hour Instructions Amount Descriptions Factory Overhead Rates Factory Overhead Costs Instructions Amount Descriptions Factory Overhead Rates Factory Overhead Costs 2. Determine the total and perunt factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). If required, round your answers to two decimal places. Refer to the Amount Descriptions ist provided for the exact wording of the answer choices for text entries Factory Overhead Per Total Factory Overhead Product Activity Table - Snowboards Complete the Activity Tables for snowboards and is 3. Determine the activity rates, assuming that the Indirect labor is associated with activities rather than with the production departments Enter these rates in the Activity Rate columns 4. Determine the total and perunt cost assigned to each product under activity-based costing required, round your cost per unit answer to two decimal places Snowboards Activity Activity Activity Activity Usage Cost Production control Material handling Cutting Department Finishing Department Number of units Activity cost per unit Activity Table - Skis Complete the Activity Table for skis. 3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Enter these rates in the Activity Rate columns 4. Determine the total and per unit cost assigned to each product under activity-based costing required, round your cost per-unit answer to two decimal places Activity Activity Activity Activity Usage Rate Cost Production control Materials handling Cutting Department Finishing Department Total Number of units Activity cost per unit Instructions Amount Descriptions Factory Overhead Rates Factory Overhead Costs Activity Table - Skis Final Question 5. Explain the difference in the per-unit overhead alocated to each product under the multiple production department factory overhead rate and activity-based costing methods. Check all that The activity based method separately accounts for the production control and materials handling activity costs, decreasing cost distortion The activity based overhead location reveals that snowboards are more costly on a per unit basis than are the skis Snowboards have fewer production control and number of moves than do isso Skis have higher activity cost per unit. The multiple production department factory overhead rate method istorts the unit costs