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b The Wall Walla Printing Company prints limited edition art books with production runs of 15,000 to 100,000. It has recently adopted an activity-based costing
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The Wall Walla Printing Company prints limited edition art books with production runs of 15,000 to 100,000. It has recently adopted an activity-based costing system to assign manufacturing overhead to products. The following data relate to one product, Art of Design, and the ABC cost pools: Art of Design: 50,400 units Annual production Direct materials per unit Direct labor per unit $37 $8 Manufacturing overhead cost pools: Cost Cost Driver Cost Pool Materials ordering Materials inspection Equipment setup Quality control $ 1,041,600 Number of purchase orders 651,000 Number of receiving reports 3,100,050 Number of setups 1.240,000 Number of inspections 31,000,000 Direct labor cost $37,032,650 Other Total manufacturing overhead Annual activity information related to cost drivers: Art of Design 1,488 Cost Pool Materials ordering Materials inspection Equipment setup Quality control All Books 148,800 purchase orders 2,604 receiving reports 166 setups 384 1 6.200 Inspections 620 Other $15,500,000 direct labor cost $396,800 Calculate the overhead rate per unit of activity for each of the five cost pools. Cost Pool Cost pool rate Materials ordering $ Materials inspection $ Equipment setup Quality control $ Other e Textbook and Media Calculate the total overhead assigned to the production of the Art of Design, Total overhead assigned $ eTextbook and Media Calculate the overhead cost per unit for the Art of Design. (Round answer to 2 decimal places, eg. 15.25.) Overhead cost per unit $ Calculate the overhead cost per unit for the Art of Design. (Round answer to 2 decimal places, eg. 15.25.) Overhead cost per unit $ e Textbook and Media Calculate the total unit cost for the Art of Design (Round answer to 2 decimal places, es. 15.25.) Total cost per unit $ e Textbook and Media Suppose that WallWalla Printing allocates overhead by a traditional production volume-based method using direct labor dollars as the allocation base and one cost pool. Determine the overhead rate per direct labor dollar and the per unit overhead assigned to the Art of Design (Round answer to 2 decimal places, es. 15.25.) Overhead rate per direct labor dollar Overhead assigned $ per unit in the Art of Design department Total cost per unit Step by Step Solution
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