Exercise 17-19 (Algo) Activity-based costing to compute activity rates, overhead cost per unit, and product cost per unit LO P3 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Rounded Edge Squared Edie Total Direct materials $ 36,000 $ 48,000 $ 84,000 Direct labor 12,000 32,000 44,000 Overhead (using plantwide rate) 42,000 81,400 124.000 Total product cost $ 90,600 $ 161,100 $ 252,000 Units produced 12,000 16,000 Product cost per unit $7.55 $10.09 Northwest's controller wants to apply activity-based costing to allocate the $124,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional Information is collected Northwest's controller wants to apply activity based costing to allocate the $124,000 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected Activity Usage Activity Budgeted cost Activity Cost ever Rounded Edge Squared Edge Total Purchasing $ 6,400 Purchase orders 159 orders 481 orders 640 orders Depreciation of machinery 64.600 Machine hours seo hours 2500 hours 2,000 hours 53.000 Setups 40 Setups 210 setups 250 Setups Total $ 124,000 Setup Required: 1. Compute the activity rate for each activity using activity based costing 2. Compute overhead cost per unit for each of the two products using activity based costing 3. Determine product cost per unit for each of the two products using activity based costing Required 1 Required 2 Required 3 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Budgeted Cost Budgeted Activity Usage Activity Rate Purchasing $ 6,400 purchase orders Depreciation 64,600 machine hours Setup 53,000 setups IS $ Requires Required 2 > Activity Rate Allocated Cost Overhead cost per unit-Rounded Edge Activity Activity Usage Purchasing Depreciation Setup Total allocated cost Units produced Overhead cost per unit 0 0 Activity Rate Allocated Cost Overhead cost per unit-Squared Edge Activity Activity Usage Purchasing Depreciation Setup Total allocated cost Units produced Overhead cost per unit $ 0 Required 1 Required 2 Required 3 Determine product cost per unit for each of the two products using activity-based costing. (Round intermediate calculations and final answers to 2 decimal places.. Direct Per Unit Product Cost per Overhead Direct Labor Materials Unit Rounded Edge Squared Edge
