Direct Labor- Hours per Unit 3.0 1.0 Annual Production 4,000 units 12,000 units Model N800 XL Model N 500 Total Direct Labor-Hours 12,000 12,000 24,000 Additional information about the company follows: a. Model N 800 XL requires $85 in direct materials per unit, and Model N 500 requires $35. b. The direct labor wage rate is $17 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Estimated Activity Cost Pool Overhead Cost Machine setups Number of setups 435,000 Special processing Machine-hours 171,000 General factory Direct labor-hours $ 2,160,000 Measure $ 1,554,000 Activity Measure Number of setups Machine-hours Direct labor-hours Model N BOO XL 90 18,000 12,000 Expected Activity Model N500 200 0 12,000 Total 290 18,000 24,000 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1). Compute the activity rate for each activity cost pool. a(z). Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Reg 21 Req ZAZ Req 28 Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Machine setup Special processing General factory per setup per MH per DLH Direct Labor- Hours per Unit Annual Production 4,000 units 12,000 units Model N 800 XL Model N 500 Total Direct Labor-Hours 12,000 12,000 24,000 1.0 Additional information about the company follows: a. Model N 800 XL requires $85 in direct materials per unit, and Model N 500 requires $35. b. The direct labor wage rate is $17 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 435,000 171,000 1,554,000 $ 2,160,000 Activity Measure Number of setups Machine-hours Direct labor-hours Model N BOO XL 90 18,000 12,000 Expected Activity Model N 500 200 0 12,000 Total 290 18,000 24,000 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1). Compute the activity rate for each activity cost pool. a(z). Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Req ZA1 Req ZAZ Reg 28 Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Overhead cost per unit Direct Labor- Hours per Unit 3.0 1.0 Annual Production 4,000 units 12,000 units Model N 800 XL Model N 500 Total Direct Labor-Hours 12,000 12,000 24,000 Additional information about the company follows: a. Model N 800 XL requires $85 in direct materials per unit, and Model N 500 requires $35. b. The direct labor wage rate is $17 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Estimated Activity Cost Pool Measure Overhead Cost Machine setups Number of setups $ 435,000 Special processing Machine-hours 171,000 General factory Direct labor-hours $ 2,160,000 1,554,000 Expected Activity Model N500 200 Activity Measure Number of setups Machine-hours Direct labor-hours Model N BOO XL 90 18,000 12,000 Total 290 18,000 24,000 12,000 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a(1). Compute the activity rate for each activity cost pool. a(). Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Reg 21 Req ZAZ Reg 28 Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Unit product cost
