Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cablo 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.
Cablo 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 app led to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below Product c Estimated volume 4,400 units Direct Labor-hours per 2.40 hours unit Direct materials cost $17.60 Product D 3,600 units 2.50 hours $30.90 Direct labor cost per $24.00 $25.00 unt Required: a-1. Compute the predetermined overhead rate under the current method. (Round your answer to 2 decimal places.) Predetermined overhead rate 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 extemal 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 cost retivity Coat Pools Machine setupa Purchase orders Order size Total Estimated Expected activity Overhead Product Product C D Total S 13,390 230 240 470 78,840 1.060 1.400 2.460 97,680 10,560 9,000 19,560 $189,910 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 Unt product
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started