Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2016 for the given activity cost pools Maintenance Fabrication Department Finishing Department Cost Driver Matera handing Machine setup Inspections $2.000 30,000 70.000 $126.000 $15,000 Machine hours 15.000 Materal rooves 5.000 Machine setups 25.000 mpection bours $61.000 The following activity predictions were also made for the year Machine hours Ma Machine spy Fabrication Department Finishing Department 10.000 1000 7003 1,000 1,500 10 1,500 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 two of its five product models 2X300 and SL500. The company has been using a company wide 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 Direct mater Direct labor cost ZX300 SL500 $15,000 $21.000 $5000 $4,000 Machine hours ib 500 700 Machine boursinishing 100 Materia's moves 30 10 Machine setups 30 60 a. Determine the cost of one unit each of 2X300 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 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 Product Costs per Unit Direct materials ZX300 SL500 Direct labor Manufacturing overhead Total cost per batch Number of units per batch Cost per unit b. Determine the cost of one unit of 2X300 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. Overhead rate based on machine hours for Finishing Dept. per machine hour 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 Direct materials Direct labor Manufacturing overhead Fabrication Dept Fishing Opt Total cost per baldi Number of units per batch Cost per unit 2X300 SL500 c. Determine the cost of one unit of ZX300 and SL500, assuming activity-based overhead rates are used for maintenance, materials handling machine setup, and inspection activities Round rate to two decimal places, if applicable. Activity based overhead rates Maintenance Materials handing Machine setup Inspection activities Use rounded overhead rate calculated above for calculations below. Round cast answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed. Direct materials Direct labor Product Costs per Unit Manufacturing overheat Maintenance activity Materials handing activity Machine setups activity Inspections activity Total cost per batch Number of units per bitch Cost per un ZX300 5500