Both the budgeted and actual factory overhead for the current year are $668,700. The actual units sold for each product also are the same as the budgeted units. The firm uses direct labor dollars to assign manufacturing overhead costs. The direct materials and direct labor costs per unit for each product are: Direct materials Direct labor Total prime cost Product A $ 57.00 27.00 $ 84.00 Product B $121.40 19.00 $140.40 Product C $ 72.00 14.00 $ 86.00 The controller noticed that not all products consumed factory overhead similarly. Upon further investigation, she identified the following usage of factory overhead during the year: Total Product A Product B Product C Overhead Number of setups 7 5 $ 9,700 Weight of direct materials (pounds) 407 257 357 154, eee Waste and hazardous disposals 32 52 37 350,000 Quality inspections 37 42 42 82,000 Utilities (machine hours) 2,800 7,700 1,400 73,000 Total $668,700 Required: 1. Determine the manufacturing cost per unit for each of the products using the volume-based method. 2. What is the least profitable and the most profitable product under both the current and the ABC systems? 3. What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the manufacturing cost per unit for each of the products using the volume-based method. (Round your intermediate calculations and final answers to 2 decimal places.) Product A Product B Product C Materials Labor Overhead Total cost $ 0.00 $ 0.00 $ 0.00 Both the budgeted and actual factory overhead for the current year are $668,700. The actual units sold for each product also are the same as the budgeted units. The firm uses direct labor dollars to assign manufacturing overhead costs. The direct materials and direct labor costs per unit for each product are: Direct materials Direct labor Total prime cost Product A $ 57.00 27.00 $ 84.00 Product B $121.40 19.00 $140.40 Product C $ 72.00 14.00 $ 86.00 The controller noticed that not all products consumed factory overhead similarly. Upon further investigation, she identified the following usage of factory overhead during the year: Total Product A Product B Product C Overhead Number of setups 7 5 $ 9,700 Weight of direct materials (pounds) 407 257 357 154, eee Waste and hazardous disposals 32 52 37 350,000 Quality inspections 37 42 42 82,000 Utilities (machine hours) 2,800 7,700 1,400 73,000 Total $668,700 Required: 1. Determine the manufacturing cost per unit for each of the products using the volume-based method. 2. What is the least profitable and the most profitable product under both the current and the ABC systems? 3. What is the new target price for each product based on 150% of the new costs under the ABC system? Compare this price with the actual selling price. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the manufacturing cost per unit for each of the products using the volume-based method. (Round your intermediate calculations and final answers to 2 decimal places.) Product A Product B Product C Materials Labor Overhead Total cost $ 0.00 $ 0.00 $ 0.00
