Answer only for the circles below

a) Exercise 2: What is the Total Cost per Unit for Dept M (dollars and cents)? See circle on the last photo below to answer.

b) Exercise 2: What is the Total Cost per Unit for Dept N (dollars and cents)? See circle on last photo below to answer.

EXERCISE 2 Gerald Manufacturing makes two different Products, M and N. The company's two departments are named after the products. Product M is made in Department M. Product N is made in Department N. Following are the annual costs and other information associated with these two products Direct Costs: Indirect Costs (Overhead) $180,000 Direct costs: Dept M Dept N Salary. VP of Overall Production Salary. Department Supervisor $76,000 $56,000 Direct Materials $300,000 $420,000 Direct Labor $240,000 $680,000 Direct Utilities Cost $120,000 $24.000 General Factory-wide Utilities $36.000 Production Supplies $36.000 Fringe Benefits $138.000 Depreciation $720.000 TOTAL OVERHEAD $1,110,000 Machine Hours 5.000 hrs 1.000 hrs Gerald Manufacturing uses an ABC Costing system. Follow these steps: 1. Identity the cost objects that will be allocated overhead costs (See completed analysis below) Allocation Overhead Costs Cost Object 51.110,000 Cost Object D 2. Pool all activities with the same cost driver (Sou completed analysis below): Match the following possible cost drivers to each activity. Remember, you are looking for a cause and effect relationship between the activity and cost driver. Machine Hours Direct Materials $ Direct Labor $ Direct Utility $ Number of Departments Activity Pool Cost Driver Salary. VP of Overall Production Number of Departments General Factory-wide Utilities Direct Utility $ Production Supplies Direct Materials $ Fringe Benefits Direct Labor $ Depreciation Machine Hours 3. Compute the Cost Allocation Rate for each activity. Hint: For the Quantity of the Allocation base, be sure to use the EXACT cost driver description in Step 2 to correctly locate the "quantity in the table at the start of the problem Activity Overhead Costs Quantity of Allocation Base Cost Allocation Rate Salary-VP Prod 5 Departments $ per dept Fac-Wide Utilities 5 $ Direct Utilities $ S per utkitys Prod Supplies $ S Direct Materials $1$ per DMS Fringe Benefits 5 S Direct Labors S per DLS Depreciation Machine Hours per machine he TOTAL 5 1 110.000 4. Allocate overhead coote to the cost object. Use the rates calculated above along with the following breakdowns in activities to allocate overhead costs to each cost object. Activity Activity Cost Allocation Rate Dept M Dept N Dept M X $ Salary. VP Prod per dept $ Dept N XS =$ per dept per utility $ Fac-Wide Utilities Dept M X $ Dept. N $ X $ per utility s $ Prod. Supplies Dept M $ XS per DMS =$ Dept N X $ per DMS $ $ Fringe Benefits Dept M X $ per DLS =$ Dept N $ X $ per DLS Depreciation Dept M hrs XS per machine hr -5 Dept N hrs XS per machine hr =$ TOTAL $ $ 5 Complete the following summary. Dept M Dept Total Direct Costs from table at the start of the problem) S Total Indirecta cated Costs from previous table) Total Production Costs S wide by Number of units 2.000 units 4.000 units Total Cost Per U EXERCISE 2: Gerald Manufacturing makes two different Products, M and N. The company's two departments are named after the products. Product M is made in Department M. Product N is made in Department N. Following are the annual costs and other information associated with these two products. Direct costs: Direct Costs: Indirect Costs (Overhead) $180,000 Dept M Dept N Salary- VP of Overall Production Salary. Department Supervisor $76,000 $56,000 Direct Materials $300,000 $420,000 Direct Labor $240,000 $680,000 Direct Utilities Cost $120,000 $24,000 General Factory-wide Utilities $36,000 $36,000 Production Supplies Fringe Benefits Depreciation $138,000 $720,000 TOTAL OVERHEAD $1,110,000 Machine Hours 5,000 hrs 1,000 hrs Gerald Manufacturing uses an ABC Costing system. Follow these steps: 1. Identify the cost objects that will be allocated overhead costs (See completed analysis below) Allocation Overhead Costs Cost Object $1,110,000 Dept M Cost Object Dept N 2. Pool all activities with the same cost driver (Seo completed analysis below): Match the following possible cost drivers to each activity. Remember, you are looking for a cause and effect relationship between the activity and cost driver. Machine Hours Direct Materials $ Direct Labor $ Direct Utility $ Number of Departments Activity Pool Cost Driver Salary-VP of Overall Production Number of Departments General Factory-wide Utilities Direct Utility $ Production Supplies Direct Materials $ Fringe Benefits Direct Labor $ Depreciation Machine Hours 3. Compute the Cost Allocation Rate for each activity. Hint: For the Quantity of the Allocation base, be sure to use the EXACT cost driver description in Step 2 to correctly locate the "quantity in the table at the start of the problem. Activity Overhead Costs Quantity of Allocation Base Cost Allocation Rate Salary. VP Prod $ Departments $ per dept Fac-Wide Utilities $ 1 $ Direct Utilities $ per utility s Prod. Supplies $ 1 lu Direct Materials S $ per DMS Fringe Benefits $ To Direct Labor $ $ per DL S Depreciation $ Machine Hours $ per machine hr TOTAL $ 1.110,000 4. Allocate overhead costs to the cost object. Use the rates calculated above along with the following breakdowns in activities to allocate overhead costs to each cost object. Activity Activity Cost Allocation Rate Dept M Dept N X $ =$ Dept M per dept Salary-VP Prod Dept N 1 X $ per dept Dept M $ X $ per utility $ Fac-Wide Utilities $ Dept N $ X $ per utility $ Prod. Supplies Dept M lu X $ =$ per DMS $ Dept N X$ = $ per DMS Fringe Benefits $ Dept M X $ =$ per DL $ Dept N $ X $ =$ per DL $ Depreciation Dept M hrs XS per machine hr =$ hrs Dept N X $ =$ per machine hr $ $ TOTAL 5. Complete the following summary. Dept M Dept N Total Direct Costs (from table at the start of the problem) $ $ Total Indirect (allocated) Costs (from previous table) Total Production Costs $ $ Divide by Number of Units 12,000 units 4,000 units Total Cost Per Unit S