Activity-Based Costing

It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's President is trying to evaluate the companys product mix strategy regarding two of its five product models, ZX300 and SL500. The company has been using a companywide overhead rate based on machine hours, but is considering switching to either department rates or 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:

Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: The following activity predictions were also made for the year: It is awumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president. Charles slack. is trying to evaluate the comparyys produ compary wide overhead rate based on machine hours but is considering switching to either department rates or activity based rates. The production manager has provided th 3. Determine the cost of one unit each of ZCO00 and S4500, assuming a company-wide overhead rate is used based on rotal machine hours. Round rate to two decimal places. a. Determine the cont of one unit each of 2300 and 55.500 , assuming a company wide cierhead rate is used based on fotal machine hours Round rate to two decimplaces oveibead rete baret on totd niachine hours per muchine houf Use rounded onetheid rate caloulated above for calculatoos below, Round cont answers to the nearest whicle number Rhund cost per unit to two decimal places Glound rate to two decimal places if applicable. Duehead rate based on machine hours for Fabricabon oepe 1 per machine hour Gerthead rate bosed on machine hous for Anithine Oept, 5 per machine hout tound rate to two deciral places if applicabie