chapter 4 question 8

Model N 800 XL Model N 500 Direct Labor Hours per Unit 3.0 2.0 Annual Production 3,000 units 10,000 units Total Direct Labor Hours 9,000 20,000 29,000 Additional information about the company follows: a. Model N 800 XL requires $60 in direct materials per unit, and Model N 500 requires $20 b. The direct labor wage rate is $22 per hour. c. The company has always used direct labor hours as the base for applying manufacturing overhead cost to products, d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine hours Direct lobor-hours Estimated Overhead Cost $ 320,000 260,000 1,305,000 $ 1,885,000 Activity Measure Number of setups Machine hours Direct labor-hours Expected Activity Model N 500 170 Model N 800 XL 80 16,000 9,000 Total 250 16,000 29,000 20,000 Anime that the mannen Wh 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products, a(1). Compute the activity rate for each activity cost pool. a(2). Determine the amount of overhead cost that would be assigned to each model using the activity based costing system. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Reg 21 Reg 22 Reg 28 Assume that the company decides to use activity based costing to assign manufacturing overhead cost to products. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Machine setup Special processing General factory $ 1,280.00 per setup $ 16 25 por MH $ 4500 por DLH Bagan Req2A2 > 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1) Compute the activity rate for each activity cost pool a(2). Determine the amount of overhead cost that would be assigned to each model using the activity based costing system. b. Compute the unit product cost of each model Complete this question by entering your answers in the tabs below. Reg 241 Req 212 Reg 28 Assume that the company decides to use activity based costing to assign manufacturing overhead cost to products. Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Ovethead cost per unit 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1). Compute the activity rate for each activity cost pool. a(2). Determine the amount of overhead cost that would be assigned to each model using the activity based costing system, b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Reg 2A1 Reg 2A2 Reg 28 Assume that the company decides to use activity based costing to assian manufacturing overhead cost to products. Computo the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places) Model N 800 XL Model N 500 Unit product cost Req2A2 Res