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Problems: Set B PROBLEMS: SETB P4-1B VideoPlus, Inc. manufactures two types of DVD players, a deluxe dard model. The deluxe model is a multi-format progressive-scan DVD player with net Assign overhead using traditional costing and ABC compute smit costs; classify activiries as value- or non- value-added model and a stan- ive-scan. Annual production is 50,000 units for the deluxe and 20,000 units for the standard. Both products require 2 hours of dlirect labor for completion. Therefore, fotal annual direct labor hours are 140,000 [2 hrs. (20,000 + 50,000)]. Expected annual manufacturing overhead is $1,050,000. Thus, the predetermined overhead rate is $7.50 ($1,050,000 140,000) per direct labor hour: The direct materials cost per unit is $42 for t model and $11 for the standard model. The direct labor cost is $18 per unit for both the deluxe and the standard models. t labor for completion. Therefore, total annual he deluxe managers identified six activity cost pools and related cost drivers and The company's accumulated overhead by cost pool as follows Expected Use of Expected Use of Estimated Cost Drivers by Product Activity Cost Pool Purchasing Receiving Assembling Testing Finishing Packing and shipping Cost Driver Overhead Drivers Standard Deluxe Orders S 126,000 400 30,000 20,000 Number of parts 444,000 74,000 115,000 23,000 140,000 70,000 195,000 80,000 100 Pounds Number of tests Units Pounds 4,000 16,000 20,000 54,000 10,00013,000 0,000 50,000 18,000 62,000 2 $1,050,000 Instructions ditional product costing, compute the total unit cost of both products. (a) Unit cost-Standard $44 Prepare a simple comparative schedule of the individual costs by product (similar to (b) Under ABC, prepare a schedule showing the computations of the activity-based over (e) Prepare a schedule assigning each activity's overhead cost pool to each product based (d) Compute the total cost per unit for each product under ABC. Illustration 4-10) head rates (per cost driver) on the use of cost drivers. (Include a computation of overhead () Cost $291,375 assigned--Standard r unit, rounding to the nearest cent.) un (e) Classify each of the activities as a value-added activity or a non-value-added activity $43.57 o products under ABC, and (2) the comparative total costs per unit under traditional costing and ABC. Problems: Set B PROBLEMS: SETB P4-1B VideoPlus, Inc. manufactures two types of DVD players, a deluxe dard model. The deluxe model is a multi-format progressive-scan DVD player with net Assign overhead using traditional costing and ABC compute smit costs; classify activiries as value- or non- value-added model and a stan- ive-scan. Annual production is 50,000 units for the deluxe and 20,000 units for the standard. Both products require 2 hours of dlirect labor for completion. Therefore, fotal annual direct labor hours are 140,000 [2 hrs. (20,000 + 50,000)]. Expected annual manufacturing overhead is $1,050,000. Thus, the predetermined overhead rate is $7.50 ($1,050,000 140,000) per direct labor hour: The direct materials cost per unit is $42 for t model and $11 for the standard model. The direct labor cost is $18 per unit for both the deluxe and the standard models. t labor for completion. Therefore, total annual he deluxe managers identified six activity cost pools and related cost drivers and The company's accumulated overhead by cost pool as follows Expected Use of Expected Use of Estimated Cost Drivers by Product Activity Cost Pool Purchasing Receiving Assembling Testing Finishing Packing and shipping Cost Driver Overhead Drivers Standard Deluxe Orders S 126,000 400 30,000 20,000 Number of parts 444,000 74,000 115,000 23,000 140,000 70,000 195,000 80,000 100 Pounds Number of tests Units Pounds 4,000 16,000 20,000 54,000 10,00013,000 0,000 50,000 18,000 62,000 2 $1,050,000 Instructions ditional product costing, compute the total unit cost of both products. (a) Unit cost-Standard $44 Prepare a simple comparative schedule of the individual costs by product (similar to (b) Under ABC, prepare a schedule showing the computations of the activity-based over (e) Prepare a schedule assigning each activity's overhead cost pool to each product based (d) Compute the total cost per unit for each product under ABC. Illustration 4-10) head rates (per cost driver) on the use of cost drivers. (Include a computation of overhead () Cost $291,375 assigned--Standard r unit, rounding to the nearest cent.) un (e) Classify each of the activities as a value-added activity or a non-value-added activity $43.57 o products under ABC, and (2) the comparative total costs per unit under traditional costing and ABC