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Ellx Company manufactures two models of ultra-high fidelty speakers-the X200 model and the X99 model Dato regarding the two products follow Product X200 x99 Direct

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Ellx Company manufactures two models of ultra-high fidelty speakers-the X200 model and the X99 model Dato regarding the two products follow Product X200 x99 Direct Tabor-hours 0.4 DLS per unit 0.6 DLHS per unit Annual Production 17,000 units 48,000 unito Total Direct Labor.rs 6.800 Date 28.800 bis 35,600 DLR 1 Boor Additional information about the company follows: a Model X200 requires $40 in direct materials per unit, and model X99 requires $32. b. The direct labor workers are paid $30 per hour c. The company has always used direct lobor-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 Core Pool Machine stupe Special pron General factory Teated Total MLVESY Kotimated Total Cost x200 Total $ 187,200 96 200 414,200 1,090 0 1.090 2,492,000 6,00 20,000 35,600 53,093,400 Nativity Mature Number of setup Machine-hour Diret labor hours 299 140 Required: 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. 4. 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 han the run fearh Md Prev 1 of 3 11 Next > MacBook Pro

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