Activity-based department rate product costing and product cost distortions Instructions Amount Descriptions Factory Overhead Rates Factory Overhead Costs Instructions Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as follows: 400,400.00 198,800.00 14,800.00 714,000.00 Indirect labor Subassembly Department Final Assembly Department Total 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 Budgeted Activity Cost Activity Activity Base Setup $138,600.00 Number of setups 0 61800.00Number of inspections 4 Total $400,400.00 The activity-base usage quantities and units produced for the two products follow Number of Number of Direct Labor Hours Direct Labor Hours_ Setups Inspections Subassembly Final Assembly Units Produced 7,000 7,000 14.000 Receivens Loudspeakers 320 Total 80 450 1,750 2,200 875 525 525 875 400 1.400 1.400 Required: 1. Determine the factory overhead rates under the multiple production department rate method, Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 for the Subassembly and Final Assembly departments, respectively. 2. Determine the total and per-unit factory overhead costs aliocated to each product, using the multiple production department overhead rates in Complete the Activity Tables for Receivers and Loudspeakers. 3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments 4. Determine the total and per-unit cost assigned to each product under activity-based costing. 5. Explain the difference in the per-unit overhead allocated to each product under the multiple production department factory overhead rate and activity-based costing methods. If required, round your answers to two decimal places. Refer to the Amount Descriptions ist provided for the exact wording of the answer choices for text entries. Amount Descriptions Amount Descriptions Direct materials Final Assembly Department Quality Control Receivers Setup Subassembly Department Factory Overhead Rates Shaded cells have feedback 1. Determine the factory overhead rates under the muole production denartment rate method, Assume that indirect labor is associated with the production departments, so that the total factory Factory Overhead Rates Shaded cells have feedback 1. Determine the factory overhead rates under the multiole production department rate method,Assume that indirect labor is associated with the production departments, so that the total factory overhead is $420,000 and $294,000 tor the Subassembly and Final Assembly department respect ellf required round your answers to two deci al places. Refer to the Amount Descriptions Wst provided for the exact wording of the answer choices for text entries Question not attempted Production Department Department Rate per direct labor hour per direct labor hour Points: 0/4 Feedback Check My Work Calculate for each department: Total department overhead+ total department allocation base Department rate Total department overhead+total department allocation base Department rate Factory Overhead Costs Shaded cells have feedback 2. Determine the total and per-unit factory overhead costs allocated to each product, using the muitiple production departmet overhead rates in (1). If required, round your answers to two decimal places. Refer to the Amount Descriptions list provided for the exact woraing of the answer choices for text entries. Question not attempted Factory Total Factory Product Overhead Unit Points:0/6 Feedback Check My Work Calculate tor each product: Activity Table Receivers Shaded cells have feedback Complete the Activity Tabies for Recoivers and Loudspeakers. 3. Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments 4. Determine the total and per-unit cost assigned to each product under activity-based costing. Ir reqwred, round your answers to two decimal places. Activity Activity Activity Usage Rate Cost /setupS Setup setups linsp. dlh dlh Quality Control Insp. Final Assembly Department Total Number of units Activity cost per unit Points: 8123 Activity Table Loudspeakers Shaded cells have feedback Complete the Activity Table for Loudspeakers. 3. Determine the activiry rates, assuming that the indlrect labor is associated with activibes rather than with the production departments. 4. Determine the total and per-unit cost assigned to each product under activity-based costing. If required, round your answers to two decimal places. Activity- Activity Activity Activity Usage Rate Cost | setups Setup Quality control Subassembly Dept. Final Assembly Dept. Total +Number of units setup S insp. s insp, dlh dlh Activity cost per unit