Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2016 for the given activity cost pools: Maintenance Materials handling Machine setups Inspections Fabrication Department Finishing Department Cost Driver $35,000 $25,000 Machine hours 30,000 15,000 Material moves 70,000 5,000 Machine setups 25,000 Inspection hours $135,000 $70,000 The following activity predictions were also made for the year: Machine hours Material moves Machine setups Inspection hours Fabrication Department Finishing Department 10,000 5,000 3,000 1,500 700 50 1,000 It is assumed that the cost per unit at activity for a given activity does not vary between departments. Slack's president, Charles Slack, is trying to eve wate the company's product mix strategy regarding two or its five product models, ZX300 and SL500. The company ruas been using a company wide overhead rale based on machine hours but is considering willing to either department rales ordlivity based rates. The production manager les pruvided the following data for the production arabach o 100 units for alle Dimer materiale Cireu, labur os Machine treurs Fatricelior) Maching hours Finishing Mascrials naves Machina setips Inspanhoirs 2x300 SL500 $14.000 $20,00O $5053 $4.CCO 503 ?CO 203100 3350 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 13.67 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 ZX300 Direct materials $ 14,000 $ Direct labor 5,000 Manufacturing overhead: 9,566.67 X Total cost per batch $ 28,566.67 * $ Number of units per batch 100 Cost per unit $ 285.67 * $ SL500 20,000 4,000 10.933.33 x 34,933.33 x 100 349.33 X 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. $ 13.5 per machine hour Overhead rate based on machine hours for Finishing Dept. $ 14 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 $ 14,000 $ 20,000 Direct labor 5,000 4,000 Manufacturing overhead: Fabrication Dept. 9,450 X 11,200 X Finishing Dept. 0 x 35,200 x Total cost per batch $ 28,450 X $ 35,200 x Number of units per batch 100 100 Cost per unit $ 0* $ 0x 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. X Activity-based overhead rates: Maintenance Materials handling Machine setup Inspection activities X X X 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 S 0XS0 X Direct labor 0x 0x Manufacturing overhead: Maintenance activity Materials handling activity Machine setups activity OX Inspections activity 0 x Total cost per batch 0X S Number of units per batch Cost per unit 0x S XX