Can you help solve questions down below and guide me through how you got solution? Kitchen King's Toledo plant manufactures three product lines, all multi-burner,
Can you help solve questions down below and guide me through how you got solution?
Kitchen King's Toledo plant manufactures three product lines, all multi-burner, ceramic cook tops. The plant's three product models are the Regular (REG), the Advanced (ADV), and the Gourmet (GMT). Until recently, the plant used a job-order product-costing system, with manufacturing overhead applied on the basis of direct-labor hours. The following table displays the basic data upon which the traditional costing system was based.
REG ADV GMT Planned annual production: Volume in units 5,000 4,000 1, 000 Production runs 40 runs of 125 units 40 runs of 100 units 20 runs of 50 units Direct material $129 $151 $203 Direct labor: (not including setup) $171 (9 hra. @ $19 per hr. ) $209 (11 hrs. @ $19 per hr. ) $247 (13 hrs. @ $19 per hr. ) Machine hours (MN) per product unit 10 MH 12 MH 17 MH Total machine hours consumed by product line in a year 50,000 (10 MH x 5, 000) 48,000 (12 MH x 4, 000) 17,000 (17 MH x 1, 000)REG ADV GMT Direct material $129.00 $151. 00 $203.00 Direct labor (not including set-up time) 171. 00 (9 hr. $19) 209.00 (11 hr. $19) 247.00 (13 hr. 156 . 00 (13 hr. $19) Manufacturing overhead 108.00 (9 hr. $12) 132 . 00 (11 hr. $12) $12) Total $408.00 $492 . 00 $606 .00Cost Driver Activity Product Activity Coat Pool Quantity for Cost Driver Line Machine related $310, 500 Product Line Machine Hours REG 50,000 ADV 48,000 GMT 17,000 Total 115,000 Material handling 52 , 500 Production Runs REG 40 ADV 40 GMT 20 Total 100 Purchasing 75,000 Purchase Orders REG 100 ADV 96 GMT 104 Total 300 Setup 85,000 Production Runs REG 10 ADV 40 GMT 20 Total 100 Inspection 27,500 Inspection REG 100 ADV 400 GMT 300 Total 1, 100 Shipping 66,000 Shipments REG 500 ADV 400 GMT 200 Total 1, 100 Engineering 32 , 500 Engineering Hours REG 250 ADV 200 GMT 200 Total 650 Facility 575,000 Machine Hours REG 50,000 ADV 48,000 GMT 17,000 Total 115, 0002. Complete an activity-based costing analysis for Kitchen King's three product lines. (Round "Pool Rate" and "Activity Cost per Unit of Product" to 2 decimal places.) Activity Product Activity Activity Activity Cost Driver Cost Driver Cost Driver Cost Pool Quantity Pool Rate Product Line Quantity for Cost for Line Cost per Product Line Product Production Unit of Line Volume Product Machine related $ 310,500 Machine hours REG 60,000 ADV 48,000 GMT 17,000 Total 15,000 Material handling 52,500 Production runs REG 40 ADV 40 GMT 20 Total 100 Purchasing 75,000 Purchase orders REG 100 ADV 95 GMT 104 Total 300 Setup $5,000 Production runs REG 40 ADV 40 GMT 20 Total 100 Inspection 27,500 Inspection hours REG 400 ADV 400 GMT 300 Total 1,100 Shipping 66,000 Shipments REG 500 ADV 400 GMT 200 Total 1.100 Engineering 32,500 Engineering hours REG 250 ADV 200 GMT 200 Total 650 Facility 575,000 Machine hours REG 60,000 ADV 45,000 GMT 17,000 Total 115,000 Grand total3. Complete the table given below to calculate the new product cost for each product line under ABC. (Round your Intermediate calculations and final answers to 2 decimal places.) REG ADV GMT Direct material Direct labor Total direct costs per unit S 0.00 0.00 0.00 Manufacturing overhead: Machine-related Material handling Purchasing Setup Inspection Shipping Engineering Facility Total ABC overhead cost per unit 0.00 0.00 5 0.00 Total product cost per unit 5 0.00 0.00 0.004. Complete the table given below to compare the overhead cost, total product cost, and target price for each product line under the two alternative costing systems. (Round your intermediate calculations and final answers to 2 decimal places.) REG ADV GMT Reported unit overhead cost: Traditional, volume-based costing system Activity-based costing system Reported unit product cost (direct material, direct labor and overhead): Traditional, volume-based costing system Activity-based costing system Sales price data: Original target price (Based on traditional, volume-based costing system) New target price (Based activity-based costing system) Actual current selling price5. Was each of Kitchen King's three product lines overcosted or undercosted? By how much per unit? (Round your intermediate calculations and final answers to 2 decimal places.) REG per unit ADV per unit GMT per unit
