Exercise 4-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing Activity Machine setup Parts handling Quality Inspections Total budgeted overhead Unit Information Units produced Budgeted Cost Activity Driver $ 11,000 (20 machine setups) 8,BAN (16,0 parts) 11,200 (100 inspections) $33,000 Product A 1,100 units 21 per unit Product 220 units $31 per unit Direct materials cost Direct labor cost $ 41 per unit 2 per unit $ 51 per unit 2.50 per unit Direct labor hours 1. Using a plantwide overhead rate based on 2.750 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each Actual Activity Usage Inspections Setups Parts Product A 8 setups 10,000 parts Product B 40 inspections 12 setups 6,000 parts 60 inspections Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) a. Compute overhead activity rates Machine setup Activity Parts handing Quality inspection $ Activity Rate 550.00 per setup 0.55 132.00 per part per inspection Show less b. Allocate overhead to Product A, B and compute overhead cost per unit Activity Allocated Cost Product A Product B