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Cabio Company manufactures two products. Product C and Product D. The company estimated it would incur $189.910 in manufacturing overhead costs during the current period.
Cabio Company manufactures two products. Product C and Product D. The company estimated it would incur $189.910 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 Pnoduct C 4 40e units 2 48 hours $17.68 $24. De Product D 3,6e8 units 2.50 hours 39.90 $25.99 Required: 0-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal pieces.) Predetermined overhead rate per DLA 2-2. 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 Unii produse 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: Expected Activity Product Produce Activity Cost Pools Machine setups Purchase orders Order size Total Estimated Overhead Cost $ 13, 392 78.848 97.682 $189.913 Total re sa I562 1 06e 12 55a h 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 Unit product oost
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