ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) Eberling, Incorporated, manufactures and sells two products: Product Q9 and Product Z8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Q9 900 8.0 7,200 Product Z8 1,000 7.0 7,000 Total direct labor-hours 14,200 The direct labor rate is $27.70 per DLH. The direct materials cost per unit is $122.40 for Product Q9 and $103.20 for Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product Q9 Product Z8 Total Labor-related DLHs $ 531,080 7,200 7,000 14,200 Production orders Orders 74,880 600 700 1,300 Order size MHs 541,944 3,800 4,000 7,800 $ 1,147,904 Required: Determine the unit product cost of each product under the activity-based costing method. 2) Upwall, Incorporated, manufactures and sells two products: Product S0 and Product F7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product S0 900 5.0 4,500 Product F7 200 2.0 400 Total direct labor-hours 4,900 The direct labor rate is $15.60 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product S0 $ 160.80 Product F7 $ 161.30 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product S0 Product F7 Total Labor-related DLHs $ 211,043 4,500 400 4,900 Machine setups Setups 10,682 400 300 700 Order size MHs 280,968 4,700 4,500 9,200 $ 502,693 Required: Determine the unit product cost of each product under the activity-based costing method. 3) Whiston Corporation uses the weighted-average method in its process costing system. The following data were taken from the records of the first processing department for a recent month. Work in process, beginning: Units in process 40 Percent complete with respect to materials 60% Percent complete with respect to conversion 50% Costs in the beginning inventory: Materials cost $ 6,200 Conversion cost $ 16,300 Units started into production during the month 190 Costs added to production during the month: Materials cost $ 42,390 Conversion cost $ 136,340 Work in process, ending: Units in process 30 Percent complete with respect to materials 50% Percent complete with respect to conversion 40% Required: a. How many units were transferred to the next department during the month? b. What were the equivalent units of production for materials and for conversion costs for the month? c. What were the costs per equivalent unit of production for materials and for conversion costs for the month? d. What was the cost of the ending work in process inventory in the department at the end of the month? e. What was the cost of the units completed and transferred to the next department during the month? 4) Walker Enterprises, Incorporated, uses a job-order costing system and sets a predetermined overhead rate at the beginning of each year based on estimated manufacturing overhead costs and estimated direct labor-hours for the upcoming year. Required: If the company sets its prices to cover actual direct materials costs, actual direct labor costs, and applied manufacturing overhead costs, will the company at least avoid a loss during the year? 5) Mattioli, Incorporated, manufactures and sells two products: Product Z6 and Product Q3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Z6 200 7.0 1,400 Product Q3 700 5.0 3,500 Total direct labor-hours 4,900 The direct labor rate is $21.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product Z6 $ 148.30 Product Q3 $ 199.00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product Z6 Product Q3 Total Labor-related DLHs $ 193,648 1,400 3,500 4,900 Product testing Tests 68,624 300 500 800 Order size MHs 579,528 3,500 3,700 7,200 $ 841,800 Required: In all computations involving dollars in the following requirements, round off your answer to the nearest whole cent. a. Compute the activity rates under the activity-based costing system. b. Determine how much overhead would be assigned to each product under the activity-based costing system. c. Determine the unit product cost of each product under the activity-based costing method.