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Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $188,910 in manufacturing overhead costs during the current
Cabio Company manufactures two products, Product C and Product D. The company estimated it would incur $188,910 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 Required: Product C 4,350 units 2.30 hours Product D 3,550 units 2.40 hours $ 17.10 $ 30.30 $ 23.00 $ 24.00 8-1. 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: Activity Cost Pools Machine setups Purchase orders Order size Total Estimated Overhead Costs $ 13,290 78,540 97,080 $188,910 Product C 220 1,040) Expected Activity Product D 230 Total 1,380 10,005 8,520 450 2,420 18,525 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
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