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could you some help double checking my work! Assume a company produces and sells only two products-14,000 units of Product A and 6,000 units of
could you some help double checking my work! Assume a company produces and sells only two products-14,000 units of Product A and 6,000 units of Product B. The selling prices are $65 per unit for Product A and $96 per unit for Product B. Product A's direct materials and direct labor costs per unit are $30 and $12, respectively. Product B's direct materials and direct labor costs per unit are $34 and $15, respectively. The company uses a plantwide overhead rate based on direct labor dollars. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products A and B: Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Estimated Overhead Cost $ 300,000 $ 150,000 $ 80,000 Expected Activity 15,000 MH 200 Setups 2 Products Activity Measure Product A Product B Machine-hours 9,000 6,000 Number of setups 50 150 Number of products 1 1 When comparing Product A's total overhead costs using the traditional approach with its total overhead costs using the activity-based approach, which of the following statements is true? The traditional plantwide approach overcosts Product A by between $50,000 and $100,000 when compared to the activity-based approach. The traditional plantwide approach overcosts Product A by between $0 and $49,999 when compared to the activity-based approach The traditional plantwide approach undercosts Product A by between $50,000 and $100,000 when compared to the activity-based approach. 0 The traditional plantwide approach undercosts Product A by between $0 and $49,999 when compared to the activity-based approach Milling Department Cost of beginning work in process inventory Costs added during the period Total cost Materials $ 10,000 294,000 $ 304,000 Conversion $ 15,000 385,000 $ 400,000 Total $ 25,000 679,000 $ 704,000 If the equivalent units of production for materials is 6,000 units using the weighted average method, then what is the cost per equivalent unit for materials? Multiple Choice O $66.67 O $49.00 550.67 $11733
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