CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 4 Not completePoints out of 2.50PFlag question Activity-Based Costing Slack Corporation has the following predicted indirect costs and cost drivers for 2016 for the given activity cost pools Fabrication Department Finishing Department Cost Driver 55,000 Machine hours Materials handling 15,000 Material moves Machine setups 70,000 5,000 Machine setups 25,000 Inspection hours $165,000 $100,000 The following activity predictions were also made for the year Machine hours Material moves Machine setups Inspection hours 10,000 3,000 700 50 1,000 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Slack's president, Charles Slack, is trying to evaluate the company's product mix strategy regarding two of its five product models, ZX300 and SL500. The company has been using a company-wide overhead rate based on machine hours but is considering switching to ether department rates or activity-based rates. The production manager has provided the following data for the production of a batch of 100 units for each of these models: ZX300 SL500 $17,000 $23,000 $5,000 $4,000 Direct materials COst Direct labor cos Machine hours (Fabrication) Machine hours (Finishing) Materials moves Machine setups Inspection hours 500 200 30 700 100 50 60 a. Determine the cost of one unit each of ZX300 and SL500, assuming a company-wide overhead rate is used based on total machine hours Round rate to two decimal places. Overhead rate based on total machine hours Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number. Round cost per unit to two decimal places. per machine hour Product Costs per Unit Direct materials Direct labor Total cost per batch Number of units per batch Cost per unit b. Determine the cost of one unit of Zx300 and SL500, assuming department overhead rates are used. Overhead is assigned based on machine hours in both departments. Round rate to two decimal places, if applicable. Overhead rate based on machine hours for Fabrication Dept. Overhead rate based on machine hours for Finishing Dept. per machine hour per machine hour Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed Product Costs per Unit Product Costs per Uni SL500 Direct materials Direct labor Fabrication Dep Finishing Dept. Total cost per batch Number of units per batch Cost per unit c. Determine the cost of one unit of ZX300 and SL500, assuming activity-based overhead rates are used for maintenance, materials handling. machine setup, and inspection actrvities. Round rate to two decimal places, if applicable. Activity-based overhead rates per machine hour Materials handling per machine move per machine setup per inspection hour Machine setup Inspection activities Use rounded overhead rate calculated above for calculations below. Round cost answers to the nearest whole number, when needed. Round cost per unit to two decimal places, if needed Product Costs per Unit Zx300 Direct materials Direct labor Materials handling activity Machine setups activity Total cost per batch Number of units per batch Cost per uni
