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EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1 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 $722,201 in manufacturing overhead costs and produce 13,700 units of Product W and 68,500 units of Product S during the current year. Unit cost for materials and direct labor are Products Product 30 Direct material Direct labor 12 21 Required: a-1. Compute the predetermined overhead rate under the current method of allocation a-2. Determine the unit product cost of each product for the current year 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: Total Activit Total 2,980 633 18,220 1,682 Activity Cost Pool Total Cost 262,240 46,209 218,640 195,112 722,201 Product S Product W Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued 900 519 7,470 734 2,080 114 10,750 948 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year Complete this question by entering your answers in the tabs below Req A1 Req A2 Req B Compute the predetermined overhead rate under the current method of allocation. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Req A1 Req A2 Req B Determine the unit product cost of each product for the current year. (Round your answers to 2 decimal places.) Unit Product Cost Product S Product W Req A1 Req A2 Req B Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Unit Product Cost Product S Product W KReq A2 Reg B
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