Ellix Company manufactures two models of ultra-high fidelity speakers--the X200 model and the X99 model. Data regarding the two products follow: Product X200 X99 Direct Labor-Hours 0.5 DLHS per unit 0.7 DLHS per unit Annual Production 17,000 units 46,000 units Total Direct Labor-Hours 8,500 DLRS 32,200 DLHS 40,700 DLHS Additional information about the company follows: a. Model X200 requires $31 in direct materials per unit, and model X99 requires $33. b. The direct labor workers are paid $10 per hour. The company has always used direct labor-hours as the 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, e. 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: Estimated Total Activity Estimated Activity Cost Pool Activity Measure Total Cost X200 X99 Machine setups Number of setups $ 144,900 84 Special processing Machine-hours 278,100 1,030 General factory Direct labor-hours 2,035,000 8,500 32,200 40,700 $ 2,458,000 Total 210 1,030 126 0 Required: 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. a. Compute the plantwide predetermined overhead rate. b. 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. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the plantwide predetermined overhead rate. (Round the final answer to nearest whole number.) Predetermined overhead rate per DLH Reg 1A Reg 1B Req 2A Part 1 Req 2A Part 2 Reg 2B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round "Predetermined overhead rate" to nearest dollar amount. Round other intermediate calculations and final answers to 2 decimal places.) Model X200 X99 Unit product cost Reg 1A Reg 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. activity rate for each activity cost pool. Activity Rate per setup Activity Cost Pool Machine setups Special processing General factory per MH per DLH Req 1A Reg 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Det amount of overhead cost that would be applied to each model using the activity-based approach. (Round "Overhea unit" answers to 2 decimal places.) Model X200 Model X99 Total overhead cost Overhead cost per unit
