at 1 100% Tables Columns Show Navigation Gallery Toolbox Zoom Document Elements Quick Tables Help Charts SmartArt Graphics WordArt Harris Systems specializes in servers for workgroup, e-commerce, and ERP applications. The company's original job costing system has two direct cost categories: direct materials and direct labor. Overhead is allocated to jobs at the single rate of $22 per direct labor hour. Atask force headed by Harris's CFO recently designed an ABC system with four activities. The ABC system retains the current system's two direct cost categories Overhead costs are reflected in the four activities. Pertinent data follow: Activity Allocation Base Materials handling Machine setup Assembling Shipping of parts # of setups # of assemb. hrs # of shipments P redetermined Overhead Allocation rate $0.75 $600.00 $82,00 $1,200.00 Harris Systems has been awarded two new contracts, which will be produced as lob A and Job B. Budget data relating to the contracts follow: Job Al 12,500 Job BD 2,400 1.250 240 Number of parts Number of setups Number of assemb. hrs Number of shipments Total direct labor hours Number of units produced Direct materials cost Direct labor cost 7,500 95 $200,000 $150,000 720 12 $36,000 $14.400 Requirements Compute the budgeted product cost per unit for each job, using the original costing system (with two direct cost categories and a single overhead allocation rate). Suppose Harris Systems adopts the ABC system. Compute the budgeted product cost per unit for each job using ABC ABCTDETE LIGHT KLM Requirement 1 Predetermined Overhead Allocation Rate Actual Quantity of the Allocation Base Used Allocated Manufacturing Overhead Cost Job B Total direct materials cost Total direct labor cost Total manufacturing overhead cost Total product cost Number of units Product cost per unit 33 34 35 Requirement 2 Predetermined Overhead Allocation Rate Actual Quantity of the Allocation Base Used Allocated Manufacturing Overhead Cost Materials handling Machine setup Assembling Shipping Problem 1 Entry Sheet Decision Case 19-1 - Solved MacBook Pro S I LO P Udo Redo AutoSum Sort A-Z Sort 2-A Gallery Toolbox Sheets Charts SmartArt Graphics K L M N Zoom Vale WordArt O Requirement 2 Predetermined Overhead Allocation Rate Actual Quantity of the Allocation Base Used = Allocated Manufacturing Overhead Cost JobA Materials handling Machine setup Assembling Shipping Total manufacturing overhead cost NO 56 57 Job B Materials handling Machine setup Assembling Shipping Total manufacturing overhead cost 58 66 facturing overhead cost Problem 1 Entry Sheet Decision Case 19-1 - Solved MacBook Pro