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Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Annual Production 17,000 units
Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Annual Production 17,000 units 43,000 units Total Direct Product X200 X99 Direct Labor-Hours 0.5 DLHs per unit 0.7 DLHs per unit Labor-Hours 8,500 DLHs 3e,100 DLHs 38,600 DLHs Additional information about the company follows a. Model X200 requires $36 in direct materials per unit, and model X99 requires $34 b. The direct labor workers are paid $50 per hour C. 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 Activit Estimated Total Cost X200 Total Activity Cost Pool Machine setups Special processing Activity Measure Number of setups Machine-hours X99 $ 203,ee0 174 290 1,010 116 303,000 1,01e Pre 1 of 3 Next > Saved Help Save & Exit Sub a. Model X200 requires $36 in direct materials per unit, and model X99 requires $34 b. The direct labor workers are paid $50 per hour C. 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 Activit Estimated Total Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Total Cost X200 116 303,000 1,010 x99 $ 203,eee 290 1,010 38,6e0 174 1,158,e00 8,500 30,100 $ 1,664,eee 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 Connect Saved Help Save & E 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 e 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 Req 1A Req 1BReq 2A Part 1 Req 2A Part 2 Req 2B ok nt nces 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 per DLH Req 1A Req 1B> Saved Help Save & Exit 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. Req 1A Req 1BReq 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 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 2A Part1 > nect Saved Help Save & Exit 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 Req 1A Req 1B Req 2A Part 1E Req 2A Part 2Req 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 Rate per setup per MH per DLH Req 1B Req 2A Part 2> ect 6 Saved Help Save & Exit 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 Req 1A Req 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. 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 KReq 2A Part 1 Req 2B > onnect Saved Help Save & Exit 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. Req 1A Req 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. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) ces Unit product cost of Model X200 Unit product cost of Model X99 KReq 2A Part 2 Req 2B
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