EMD Corporation manufactures two products. Product S and Product W. Product W is the more complex of the two products requiring one hour of direct labor time per unit to manufacture compared to one-half hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct labor-hours. The company estimated it would incur $500,000 in manufacturing overhead costs and produce 10,000 units of Product W and 60,000 units of Product S during the current year. Unit cost for materials and direct labor are: Product S Product W Direct material S10 $24 Direct labor S8 $12 Required: Compute the predetermined overhead rate order the current method of allocation and determine the unit product cost of each product for the current year. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year.

Accounting 203 Quiz # 5 Name EMD Corporation manufactures two products, Product S and Product W. Product W is the more complex of the two products, requiring one hour of direct labor time per unit to manufacture compared to one-half hour of direct labor time for Product S. Product W is produced on an automated production line Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $500,000 in manufacturing overhead costs and produce 10,000 units of Product W and 60,000 units of Product S during the current year. Unit cost for materials and direct labor are: Direct material Direct labor Product S S 10 Product W $ 24 12 Required: Compute the predetermined overhead rate under the current method of allocating overhead. a. Determine the total cost of a finished unit under the current method of allocating overhead. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below c. Total Activity Activity Cost Pool Total Cost Product S Product W Total s 200,000 800 ,200 2,000 100 600 Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued 500 43,500 104,000 3,000 10,000 13,000 152,500 860 1,140 2,000 S 500,000 Using the data above and an activity-based costing approach, determine the application rate for each cost pool. d. e. Determine the total cost of a finished unit under an activity-based costing approach