Can you please help me with problem number P4-3B

2 4 Activity-Based Costing Before finalizing its decision, management asks Kinnard's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2017 Expected Activity- Activity Cost Driver Number of orders Machine setups Number of setups Overhead $ 775,000 580,000 3100.000 445,000 Cost Drivers 25,000 20,000 100,000 Overhead Rate $31 29 31 89 ing Machinir Quality control Machine hours Number of inspections 5,000 The cost drivers used for each product were: Cost Driver Elite Purchase orders 11,250 Machine setups 11,000 Machine hours 40,000 2,750 Preferred 13,750 9,000 60,000 2,250 Total 25,000 20,000 100,000 5,000 Instructions (a) Assign the total 2017 manufacturing overhead costs to the two products using (a) Elite $2,152,500 activity-based costing (ABC) and determine the overhead cost per unit. b) Cost/unit Elite $807.63 (b) What was the cost per unit and gross profit of each model using ABC costing? (e) Are management's future plans for the two models sound? Explain. Assign overhead costs using P4-3B Luxury Furniture designs and builds factory-made, premium, wood armoires for traditional costing and ABC homes. All are of white oak. Its budgeted manufacturing overhead costs for the year 2014 compare results. are as follows Overhead Cost Pools Purchasing Handling materials Production (cutting, milling, finishing) Setting up machines Inspecting Inventory control (raw materials and finished goods) Utilities Amount $ 45,000 50,000 130,000 85,000 60,000 80,000 100,000 $550,000 Total budgeted overhead costs For the last 4 years, Luxury Furniture has been charging overhead to products on the basis of materials cost. For the year 2017, materials cost of $500,000 were budgeted. Jim Brigham, owner-manager of Luxury Furniture, recently directed his accountant, Bob Borke, to implement the activity-based costing system that he has repeatedly pro- posed. At Jim Brigham's request, Bob and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools Expected Overhead Cost Pools Activity Cost Drivers Cost Drivers 500 Purchasing Handling materials Number of orders Number of moves Production (cutting, milling, finishing) Direct labor hours Number of setups 65,000 1,000 4,000 Setting up machines Inspecting Inventory control (raw materials Number of inspections and finished goods) Utilities Number of components Square feet occupied 40,000 50,000 Debbie Steiner, sales manager, has received an order for 12 luxury armoires from t estimates for producing 12 Thom's Interior Design. At Debbie's request, Bob prepares cos