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Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing 75,000 hrs Assembly Total:

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Estimated Overhead Costs by Department Estimated Direct Labor Hours & Machine Hours by Department 150,000 hrs 125,000 hrs 100,000 hrs Finishing 75,000 hrs Assembly Total: Assembly $8,000,000 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Estimated Overhead Costs by Activity Cost Driver & Expected Usage by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Compute the overhead cost per unit of each model using ABC. XL RD Overhead Overhead Activity Activity Rate Activity Driver Incurred Activity Driver Incurred Assigned Assigned Maintenance MH DLH per MH MH Supervision per DLH DLH $ Overhead Cost Per Unit C 0 Required 28 Required 2A Prev 1 of 1 Next TO 2. The company's XL model requires 2 direct labor hours and 1 machine hour. The RD model requires 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Plantwide OH Rate OH Cost Per Unit Model Activity Driver XL DLH RD DLH Required 2A Required 3 Prev 1 of 1 Next OCT

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