Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $192,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Data concerning the current period's operations appear below: Estimated volume Direct labor-hours per unit Direct materials cost per unit Direct labor cost per unit Product c 4,550 units 2.70 hours $19.10 $27.00 Product D 3,750 units 2.80 hours $32.70 $28.00 Required: a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH a-2. Determine the unit product cost of each product for the current year. (Round your intermediate calculations and final answers to 2 decimal places.) Product Product D Unit product cost b. The company is considering using an activity based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Estimated Expected Activity Overhead Activity Cost Pools Cost Product Product Total Machine setup $ 13,690 260 270 530 Purchase orders 79,740 1,120 1,460 2,580 Order size 99.480 12,285 10,500 22,785 Total $192,910 Determine the unit product cost of each product for the current period using the activity-based costing approach (Round your Intermediate calculations and final answers to 2 decimal places.) Required: a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH a-2. Determine the unit product cost of each product for the current year. (Round your intermediate calculations and final answers to 2 decimal places.) Product C Product D Unit product cost b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Estimated Expected Activity Overhead Activity Cost Pools Cost Product Product D Total Machine setups $ 13,690 260 270 530 Purchase orders 79,740 1,120 1/60 2,580 Order size 99,480 12,285 10,500 22,785 Total $192,910 Determine the unit product cost of each product for the current period using the activity based costing approach (Round your intermediate calculations and final answers to 2 decimal places.) Product C Product D Unit product cost
