Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $129,000 Number of setups Ordering materials 12,000 Number of orders Machining 94,500 Machine hours Receiving 19,800 Receiving hours Silven produces two models of cell phones with the following expected activity demands: Model X Units completed Number of setups Number of orders Machine hours Receiving hours Required: 4,700 80 200 5,400 330 Model X Model Y Model Y 9,400 40 400 4,050 660 A 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned $ 120 600 9,450 990 150,600 104,700 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relativelv

Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Silven produces two models of cell phones with the following expected activity demands: Required: 1. Determine the total overhead assigned to each product using the four activity drivers. 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim calculations to two decimal places and round your final answers to the nearest dollar. 3. Using ABC as the benchmark, calculate the percentage error. Round your answers to two decimal places. Foedback TCheck Mty Work 1. Activity Rate = Expected cost activity capacity. Overhead Cost = Activity Ratex Expected Activity demand 2. New Cost Pools = Expected Cost +[ (Expected Cost Total two most expensive ) two least expensive ]. New activity rates = Above calculation Activity Capacity. This answer is used to calculate the Total OH assigned to each Model. 3. Percentage error = (Total approx. ABC cost -Activity cost assignment ) Activity cost assignment. Discuss desirability