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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 2 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 $1,068,798 In manufacturing overhead costs and produce 14,500 units of Product W and 58,000 units of Product S during the current year. Unit cost for materlals and direct labor are ProductS $ 17 ProductW s 25 Direct material Direct labor 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 Activity Cost Pool Total Cost 473,710 53,582 247,528 294,866 Product S Product W Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued 1,548 563 7,688 685 2,198 168 11,368 896 otal 3,730 723 19,848 1,581 $1,068,798 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.) ned overhead rate per DLH
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