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Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers

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Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

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image text in transcribed Claire Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Costs $269,568 803,296 183,040 633,152 Activity Pool Binding Printing Product design General Total overhead costs Cost Driver Number of units Machine hours Change orders None $1,889,056 Other information is as follows: Tablets 62,800 $3.09 $3.93 25,500 125,000 1,400 Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Books 20,100 $10.09 $8.08 16,100 120,000 3,000 Calculate predetermined OH rate. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined OH rate $ /DLH Determine the unit product cost for Tablets and Books using the traditional costing system. (Round overhead rate and final answers to 2 decmial places, e.g. 15.25.) Tablets Unit product cost Books $ $ Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.) ABC rates Binding Printing Product design $ /unit $ /machine hour $ /change order Determine the unit product cost for Tablets and Books using the activity-based costing system. (Round all rates and final answers to 2 decmial places, e.g. 15.25.) Tablets Books $ Total unit cost $ Show that General cost is the difference between the total overhead costs allocated to products under the traditional system and the total cost allocated to products under the activity-based costing system. (Round answers to 0 decmial places, e.g. 1,525.) Traditional Total allocated overhead $ ABC $ Difference $

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