Direct-materlai cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are dinven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow Top management is very concerned about declining profitability desplte a heaithy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation duning which new, highty automated machinery was installed-machinery that was expected to produce significant operating efficiencies. Required: 1. Assuming use of direct-tabor hours to apply overnead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained 2. Astuming use of activity-based costing compute the unit manufacturing costs of the Standardi and Enhanced products if the expected manufocturing volume is attained 3. Ontanos selling prices are based heavily on cost a. By using directrabor hours as an application base, which product is overcosted and which product is undercosted? Calculate the amount of the cost distortion for each product. b. If it possibie that overcosting and undercosting (te, cost distortion) and the subsequent determination of seling prices are contributing to the company's profit woes? Complete this question by entering your answers in the tabs below. Assuming use of activity based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are diven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Top management is very concerned about decining profitability despite a heaithy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was instalied-machinery that was expected to produce significant operating efficiencies. Required: 1. Assuming use of direct-tabor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained 3. Ontario's selling prices are based heavily on cost. a. By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? Caiculate the amount of the cost distortion for each product. b. Is it possible that overcosting and undercosting (t.e. cost distortion) and the subsequent determination of selling prices are contributing to the company's pront woes? Complete this question by entering your answers in the tabs below. Is it possible that overcosting and undercosting (i.e., cost distortion) and the subsequent determination of selling prices are contributing to the companys proft wes? contributing to the company's profit woes? is cost distortion centributing tis the company > profit woes? Ontano, Incorporated, manufactures two products, Standard and Enhanced, and applies overhead on the basis of directlabor hours Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows Standord: Estimated production volume, 3,000 units Direct-materlal cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced: Estimated production volume, 4,000 units Direct-materlal cost, $40 per unit Direct labor per unit, 4 hours at $12 per nour Ontario's overhead of $800,000 can be identified with three major activities order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are diven by number of orders processed, machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Top management is very concerned about deciining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a masslve plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficlencles. Required: 1. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained: 3. Ontario's selling prices are based heavily on cost. a. By using direct-tabor hours as an application base, which product is overcosted and which product is undercosted? Caiculate the amount of the cost distortion for each product. b. Is it possible that overcosting and undercosting (le, cost distortion) and the subsequent determination of seiling pnces are contributing to the company's profit woes? Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities: order processing ($150,000). machine processing ($560,000), and product inspection ($90,000). These activities are driven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Top management is very concerned about decining profitability despite a heaithy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficiencles Required: 1. Assuming use of direct-labor nours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 3. Ontario's seling prices are based heavily on cost. a. By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? Calculate the amount of the cost distortion for each product b. Is it possible that overcosting and undercosting (l.e, cost distortion) and the subsequent determination of seling prices are contributing to the company's profit woes? Complete this question by entering your answers in the tabs below. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the standard and Enhanced products if the expected manufacturing volume is attained. Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities: order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activitues are driven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow Top management is very concerned about decining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzing because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficiencies. Required: 1. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained 3. Ontarlo's selling prices are based neavily on cost a By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? Caiculate the amount of the cost distortion for each product. b. is it possible that overcosting and undercosting (1.e. cost distortion) and the subsequent determination of selling prices are contributing to the company's profit woes? Complete this question by entering your answers in the tabs below. By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? calculate the amount of the cost distortion for each product. Direct-materlai cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are dinven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow Top management is very concerned about declining profitability desplte a heaithy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation duning which new, highty automated machinery was installed-machinery that was expected to produce significant operating efficiencies. Required: 1. Assuming use of direct-tabor hours to apply overnead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained 2. Astuming use of activity-based costing compute the unit manufacturing costs of the Standardi and Enhanced products if the expected manufocturing volume is attained 3. Ontanos selling prices are based heavily on cost a. By using directrabor hours as an application base, which product is overcosted and which product is undercosted? Calculate the amount of the cost distortion for each product. b. If it possibie that overcosting and undercosting (te, cost distortion) and the subsequent determination of seling prices are contributing to the company's profit woes? Complete this question by entering your answers in the tabs below. Assuming use of activity based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are diven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Top management is very concerned about decining profitability despite a heaithy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was instalied-machinery that was expected to produce significant operating efficiencies. Required: 1. Assuming use of direct-tabor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained 3. Ontario's selling prices are based heavily on cost. a. By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? Caiculate the amount of the cost distortion for each product. b. Is it possible that overcosting and undercosting (t.e. cost distortion) and the subsequent determination of selling prices are contributing to the company's pront woes? Complete this question by entering your answers in the tabs below. Is it possible that overcosting and undercosting (i.e., cost distortion) and the subsequent determination of selling prices are contributing to the companys proft wes? contributing to the company's profit woes? is cost distortion centributing tis the company > profit woes? Ontano, Incorporated, manufactures two products, Standard and Enhanced, and applies overhead on the basis of directlabor hours Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows Standord: Estimated production volume, 3,000 units Direct-materlal cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced: Estimated production volume, 4,000 units Direct-materlal cost, $40 per unit Direct labor per unit, 4 hours at $12 per nour Ontario's overhead of $800,000 can be identified with three major activities order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are diven by number of orders processed, machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Top management is very concerned about deciining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a masslve plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficlencles. Required: 1. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained: 3. Ontario's selling prices are based heavily on cost. a. By using direct-tabor hours as an application base, which product is overcosted and which product is undercosted? Caiculate the amount of the cost distortion for each product. b. Is it possible that overcosting and undercosting (le, cost distortion) and the subsequent determination of seiling pnces are contributing to the company's profit woes? Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities: order processing ($150,000). machine processing ($560,000), and product inspection ($90,000). These activities are driven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Top management is very concerned about decining profitability despite a heaithy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficiencles Required: 1. Assuming use of direct-labor nours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 3. Ontario's seling prices are based heavily on cost. a. By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? Calculate the amount of the cost distortion for each product b. Is it possible that overcosting and undercosting (l.e, cost distortion) and the subsequent determination of seling prices are contributing to the company's profit woes? Complete this question by entering your answers in the tabs below. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the standard and Enhanced products if the expected manufacturing volume is attained. Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per hour Ontario's overhead of $800,000 can be identified with three major activities: order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activitues are driven by number of orders processed. machine hours worked, and inspection hours, respectively. Data relevant to these activities follow Top management is very concerned about decining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzing because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficiencies. Required: 1. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. 2. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained 3. Ontarlo's selling prices are based neavily on cost a By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? Caiculate the amount of the cost distortion for each product. b. is it possible that overcosting and undercosting (1.e. cost distortion) and the subsequent determination of selling prices are contributing to the company's profit woes? Complete this question by entering your answers in the tabs below. By using direct-labor hours as an application base, which product is overcosted and which product is undercosted? calculate the amount of the cost distortion for each product