Crown Inc. Manufactures & sells two different products: JB25 & JB30. The Manufacturing department Ha determined the following costs: 18 JB25 $3.00 JB30 $4.00 Raw material costs per unit Freight Associated with Raw Material per unit $0.20 $0.30 hrs. Direct Labor hours Labor rate per hour 0.5 $16.00 0.75 hrs. $16.00 Overhead is allocated based on an Activity Based Costing System The three basic activities are Total Cost for the 4th Quarter $100,000.00 Cost Driver # of Setups # of Setups JB25 160,000 # of Setups JB30 88,000 Setup & Handling Depreciation of Machines $50,000.00 Gross units Sold All other Overhead Gross units Sold $60,000.00 $210,000.00 Question 2: Determine the estimated Overhead Allocation based on Gross Sales Activity Cost Cost Drive Quantity Cost Drive Rate JB25 # of Setups 160,000 JB25 JB25 Allocation of Gross Sales Overhead 3,200,000 Cost per Unit JB30 # of Setups 88,000 JB30 JB30 Gross Sales 4,400,000 Allocation of Overhead Cost per Unit Total Setups Depreciation of Machines All other Overhead Total Question 3: Determine The Total Manufacturing Cost per Unit & the Monthly Cost of Gross Sales Crown Inc. Manufactures & sells two different products: JB25 & JB30. The Manufacturing department Ha determined the following costs: 18 JB25 $3.00 JB30 $4.00 Raw material costs per unit Freight Associated with Raw Material per unit $0.20 $0.30 hrs. Direct Labor hours Labor rate per hour 0.5 $16.00 0.75 hrs. $16.00 Overhead is allocated based on an Activity Based Costing System The three basic activities are Total Cost for the 4th Quarter $100,000.00 Cost Driver # of Setups # of Setups JB25 160,000 # of Setups JB30 88,000 Setup & Handling Depreciation of Machines $50,000.00 Gross units Sold All other Overhead Gross units Sold $60,000.00 $210,000.00 Question 2: Determine the estimated Overhead Allocation based on Gross Sales Activity Cost Cost Drive Quantity Cost Drive Rate JB25 # of Setups 160,000 JB25 JB25 Allocation of Gross Sales Overhead 3,200,000 Cost per Unit JB30 # of Setups 88,000 JB30 JB30 Gross Sales 4,400,000 Allocation of Overhead Cost per Unit Total Setups Depreciation of Machines All other Overhead Total Question 3: Determine The Total Manufacturing Cost per Unit & the Monthly Cost of Gross Sales