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Answer all the parts of the question. Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead
Answer all the parts of the question.
Harrison Company makes two products and uses a traditional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Rascon Parcel Direct materials cost per unit 14 $.7o 3.80 Dircct labor cost pcr unit Direct labor-hours per unit Number of units produced .1 IO 18.000 45.00o These products are customized to some degree for specific customers Required: 1. The company's manufacturing overhead costs for the year are expected to be $222,300. Using the company's traditional costing system, compute the unit product costs for the two products 2. Management is considering an activity-based absorption costing system in which half of the overhead would continue to be allocated based on direct labor-hours and half would be allocated based on engineering design time. This time is expected to be distributed as follows during the upcoming year: Rascon Parcel Total 4-300 4300 8,60o Enginccring design timc (in hours) Compute the unit product costs for the two products using the proposed activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required1 Required 2 The company's manufacturing overhead costs for the year are expected to be $222,300. Using the company's traditional costing system, compute the unit product costs for the two products. (Round your intermediate calculations and final answers to 2 decimal places.) Parcel Rascon 12.57 Unit product cost $ 19.21$Step by Step Solution
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