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 0.4 Dils per unit 0.6 DLHS per unit Annual Production 19,000 units 49,000 units Total Direct Labor-Hours 7,600 DLHS 29,400 DLHO 37,000 DLHS Additional information about the company follows: a. Model X200 requires $37 in direct materials per unit, and model X99 requires $34. b. The direct labor workers are paid $60 per hour. c. The company has always used direct labor-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. 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: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Total Activity Estimated Total Cost X200 X99 Total $ 200,800 116 174 290 270,000 1,080 0 1,000 1,480,000_7,600 29,400 37,000 $1,958,800 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, 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 Rearia Req 1B Req 2A Part 1 Req ZA Part 2 Reg 28 Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. Compute the plantwide predetermined overhead rate. (Round your answer to the nearest whole dollar.) Predetermined overhead rate per DLH Reg 1A Peq 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume that the company continues to use direct labor-hours as the allocation 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 Req 1A Req 18 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. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rato per setup per MH per DLH Reg 1A Reg 1B Req 2A Part 1 Req 2A Part 2 Reg 28 Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Determine the amount of overhead cost that would be applied to each model using the activity-based approach. (Round "Overhead cost per unit answers to 2 decimal places.) Model X200 Model X99 Total overhead cost Overhead cost per unit Req 1A Reg 1B Req 2A Part 1 Req 2A Part 2 Req 28 Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost of Model X200 Unit product cost of Model X99
