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couluty Maps Gmail Macroeconomics Ro.. 4 Homework Seved Help Save & Exit Check Elix Company manufactures two models of ultra-high fidelity speakers-the X200 model and
couluty Maps Gmail Macroeconomics Ro.. 4 Homework Seved Help Save & Exit Check Elix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Product X200 Direct Labor-four 0.4 D per unit . Duit per unit Annual Production 17,000 unite 48,000 units x99 Total Direct Labor-lours 6.000 28,800 35,600 DIN Boor Additional information about the company follows: a. Model X200 requires $40 in direct materials per unit, and model X99 requires $32 b. The direct labor workers are paid $30 per hour. c. The company has always used direct lobor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment. 1. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows: forences Activity Control Machine setapa special processing General Tectory Activity Mensure Sanber of setup Machine-hours Direct labor-hour Hatimated Total AELVIS Estimated Total Cost X200 x99 Total 3107,200 96 14 260 414.200 1.090 0 1.090 2,192.000 4.800 28.800 35.600 $3,093,400 Required: 1. Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. a. Compute the plantwide predetermined overhead rate 6. Compute the unit product cost of each model 2. Assume that the company decides to use activity based absorption costing to apply overhead cost to products a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activity based approach b. Comoute the unit product cost of each model G Proy 1 of 3 Next > MacBook Pro Q Search or enter address 1 23 $ % &
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