Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Atlas Company makes two types of beauty products - Solskin and GlowSkin. Data concerning these two product lines appear below. Softskin GlowSkin Selling Price per

image text in transcribed
Atlas Company makes two types of beauty products - Solskin and GlowSkin. Data concerning these two product lines appear below. Softskin GlowSkin Selling Price per unit $300.00 $400.00 Direct Materials per Unit $120.00 $150.00 Direct Labor per unit $80.00 $125.00 Estimated annual production and sales 25,000 units 64,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours and the cost per direct labor hour is $100. Data concemning manufacturing overhead for the upcoming year appear below. Management Salanes $ 1,800,000 Vehicle Expenses 500,000 Machine Depreciation 1,000,000 Office Supplies 100,000 Administrative Expenses 600,000 Estimated total manufacturing overhead $4,000,000 The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the follomng five activity cost pools (the Other cost pool indudes organization- sustaining costs and idle capacity costs) Activity Cost Pool Cost Pool Activity Measure Total Activity SoftSkin GlowSkin Supporting direct labor $ 1.400.000 Number of Direct labor hours ??? DLHS ??? DUHS ??? DLHS Batch setups $ 800,000 Number of setups 400 Machining $ 1,200,000 Number of Machine Hours 1.000 Product sustaining $ 400.000 Number of Products Other $ 200.000 Organization sustaining TOTAL $ 4,000,000 REQUIRED 1 TRADITIONAL COSTING a Compute the predetermined overhead tate b Compute the product cost per unit for SoftSkin and GlowSkin products under the company's traditional costing System C Using the price per unit given above, and the cost per unit you computed, calculate the product margin per unit and the product margin percent per unit for Sofskin and Glow Skin 500 ABC COSTING a Compute the activity rates in each of the cost pools by Compute the product cost per unit for SotSkin and Glow skin products under the attity-based casting 5/sem G Using the h eront and the cost per un computed calculate the product margin per unit and product magn percentage petunt for Sorter and Glow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CPAexcel Exam Review Focus Notes Auditing And Attestation 2022

Authors: Wiley

1st Edition

111984858X, 978-1119848585

More Books

Students also viewed these Accounting questions