Allocote overheod using a single plantwide rate, multiple department rates, and actwity-based costing Big Sound Int. manufectures two products: recelvers and lovdspeakers. The factory ovarhesd incurred is as follews: The actilly base atsociased with the twe producton departments is direct lasor hourz. The indirect laber cas be assigned to twe different activitiat as foiows: The actrity-bese osage auantites and units preduted for the two predusts follow: Required: 1. Determins a platitwile orerhead nete besed upen ofrect labor hours. Direct lebor tuerteed rote: 1 per airect lebor hour activite basiet esching. Allocate overhead using a singie plantwide rate, multiple department rates, and activity-based costing Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as follows: The activity base arsocieted withthe two produoton 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 foliow:? Required: 1. Determine a plontwide ovethead rete based upon direct labor hours. Direct labor overhead rate: 1 per direct labor hour 2. Determine the total and per-unit fectory overheod coste ellocated to each product, using the plantwide overhead rate in (1). Round per unit antounts to the aearest whole cent. 1. Destrmine a pistwide overhead rate hased upen diect labor hours. Direct laboc dusthesd rabe per diect labon hour actinity-bosed costing. lootipaniest Both the plantwide and mutiple preduction departmein overhens mathods accornhely allocales lactory overhagd becpuse aceives and 1 to locdsotainert. Actrifribetsed costing requile evality contel inistetions thon do receivern. As a resulti lovdsptakers have actriey costs than recelivar? attivsyransed coiting occuralel alitatex factory pverhead besale guel ty contisl ifspections than do recercers. As a resur, isudspeshers have requirs Adiviristales cesting; The piantwist Awertend method alsceits a If dveritast te asea product, while the multple ptoductign departmant mathed alscatas 1 dedert the allocaton of aytrithed becituse they to lovelipeshas A ctivity-64sed casting sotuget than do rectiven. fin hation, mudteations 15sinsin acvily toate than roceivere The piantwide overhead mathod alocntes 1 . of brprhesd to tach preduct, while the mungle Brbactian itportmant method allocates I distat the allocation of wierthad becivie ther peeprthat bu fectuter a*d 1 . aticurateli alsceier factere everhead lrecause dibert the alochtise of evirhed beceute ther to lovdesebierz. Acterify-tented osating acourately aliocates factory everiesd socouse acthity icosts that raceivara. detert the allocatidn el avarhese becruse thwy ip lsufiedwen. Actrify-besiet coving eccurbtaly alscater tactary pierfadi because for haw esth prosuct consumes creitused. Loudspeaiers have activity ceate than escmiring
