Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: Fabrication Department Finishing Department Cost Driver Maintenance $20.000 $10,000 Machine hours Materials handling 30.000 15.000 Material moves Machine setups 70,000 5.000 Machine setups Inspections 25,000 Inspection hours 5120,000 $55,000 The following activity predictions were also made for the year: Fabrication Department Finishing Department Machine hours 10,000 Material moves 3,000 Machine setups Inspection hours 700 It is assumed 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 company's product mix strategy regarding of its five product models, ZX300 and 51500. The company has been using a company wide overhead rate based on machine hours but is considering switching to either department rates or activity-ba rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: 2300SLS00 Direct materials cost $12.000 18.000 Direct labor cost $5.000 $4,000 Machine hours (Fabrication) 500 7 00 Machine hours (Finishing 200 100 Materials moves 30 60 a. Determine the cost of one unit each of ZX300 and SL500, assuming a company-wide overhead rate is used based on total machine hours. Round rate to two decimal places. Overhead rate based on total machine hours 0 X per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places. SL500 18000 4000 Product Costs per Unit ZX300 Direct materials $ 12000 Direct lahor SOOO Manufacturing overheat Total cost per batch $ 0x5 Number of units per batch 0x Cast per unit b. Determine the cost of one unit of ZX300 and SL500, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments Round rate to two decimal places, if applicable. Overhead rate based on machine hours for Fabrication Dept 50 % per machine hour Overhead rate based on machine hours for Finishing Dept. $0 per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed Product Costs per Unit Product Costs per Unit ZX300 SL500 Direct materials OXS Direct labor 0X Manufacturing overhead: Fabrication Dept 0 % Finishing Dept. 0 x OX Total cost per batch 5 0x50x Number of units per batch 0x 0x Cost per unit 0x50x soddns E intenance, materials handling machine setup, and inspection activities. c. Determine the cost of one unit of ZX300 and SL500, assuming activity based overhead Round rate to two decimal places, if applicable Activity based overhead rates: Maintenance Materals handling Machine setup inspection activities a de eded Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed Round cost per un to two dec Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Product Costs per Unit ZX300 SL500 Direct materials 0 X 5 Direct labor Manufacturing overhead: Maintenance activity Materials handling activity Machine setups activity Inspections activity Total cost per batch OXS Number of units per batch Cost per unit 0x5 oooooo X X OOOOO X X X X Check Part