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Activity-Based Department Rate Product Costing and Product Cost Distortions Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as follows:
Activity-Based Department Rate Product Costing and Product Cost Distortions Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as follows: 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: The activity-base usage quantities and units produced for the two products follow: Required: Subassembly and Final Assembly departments, respectively. \begin{tabular}{lr|l} Department & Production Department Rate \\ \hline Subassembly Department & $ & \\ Final Assembly Department & $ & per direct labor hour \\ & & $ \end{tabular} \begin{tabular}{ll|l} Activity & \multicolumn{2}{l}{ Activity Rate } \\ \hline Setup & & X per setup \\ Quality Control & X per inspection \\ Subassembly Department & $ & per direct labor hour \\ Final Assembly Department & $ & per direct labor hour \end{tabular} 4. Determine the total and per-unit cost assigned to each product under activity-based costing. Round the per unit amounts to the nearest whole cent. \begin{tabular}{lc|lc|l} Product & \multicolumn{2}{c}{ Total Activity Cost } & \multicolumn{2}{c}{ Activity Cost Per Unit } \\ \hline Receivers & X & X & X & \\ Loudspeakers: & $ & $ \end{tabular}
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