Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Estimated Total Activity Estimated Activity Cost Pool Activity Measure Total Cost X200 X99 Total Machine setups Number of setups $ 149,600 88 132 220 Special

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Estimated Total Activity Estimated Activity Cost Pool Activity Measure Total Cost X200 X99 Total Machine setups Number of setups $ 149,600 88 132 220 Special processing Machine-hours 346,502 992 990 Direct labor- General factory hours 2,248,00 6,eee 22,eee 28,eee $2,736,100 Required: 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. a. Compute the plantwide predetermined overhead rate. b. Compute the unit product cost of each model. 2. Assume that the company decides to use activity based absorption costing to apply overhead cost to products, a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activity based approach. b. Compute the unit product cost of each model. Reg 1A Reg 1B Reg 2A Part 1 Req 2A Part 2 Reg 28 Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the plantwide predetermined overhead rate. (Round the final answer to nearest whole number.) Predetermined overhead rate per DLH ROGA Req 1B > Req 1A Req 1B Reg 2A Part 1 Req 2A Part 2 Req 2B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round "Predetermined overhead rate" to nearest dollar amount. Round other intermediate calculations and final answers to 2 decimal places.) Model X200 X99 Unit product cost Req 1A Reg 1B Req ZA Part 1 Req 2A Part 2 Reg 28 Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Compute the activity rate for each activity cost pool. Activity Cost Pool Machine setups Special processing General factory Activity Rate per setup per MH por DLH Heq ZA Part 2 Req 1A Reg 1B Req 2A Part 1 Roq 2 Part 2 Reg 2B Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Determine the amount of overhead cost that would be applied to each model using the activity-based approach. (Round "Overhead cost per unit" answers to 2 decimal places.) Model X200 Model X99 Total overhead cost Overhead cost per unit Reg 28 Req 1A Req 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Unit product cost of Model X200 Unit product cost of Model X99

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Worship Audit Making Good Worship Better

Authors: Mark Earcy

1st Edition

1851742948, 978-1851742943

More Books

Students also viewed these Accounting questions

Question

Write a letter asking them to refund your $1,500 down payment.

Answered: 1 week ago