Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum, it applies all Indirect costs according to an annual predetermined rate based on direct labor-hours. The plant controller has recommended that the company switch to an activity-based costing system. The controller's staff prepared the following cost estimates for next year (year 2) for the recommended cost drivers. Activity Purchasing material Receiving material Setting up equipment Machine depreciation and maintenance, Ensuring regulatory compliance shipping Total estimated cost Recommended Cost Driver Number of purchase orders Direct materials cost Number of production runs Machine-hours Number of inspections Number of units shipped In addition, management estimated 45,000 direct labor-hours for year 2. Assume that the following cost-driver volumes occurred in January, year 2 Estimated Cost $124,500 230,400 224,040 77,310 445,500 1,069,200 $ 2,171,250 Estimated Cost Driver Activit 240 purchase orders $ 2,880,000 120 runs 15,462 hours 54 inspections 594,000 units Number of units produced Silver 32,000 Direct labor-hours 2,000 Gold 10,000 1,200 Platinum 3,000 400 Number of purchase orders. 7 6 Direct materials costs $ 97,500 $ 60,000 5 37,500 Number of production runs 2 3 Machine-hours 700 175 100 Number of inspections: e Units shipped 32,000 10,000 3,000 Labor costs are based on the contractual rate of $25 per hour. Required: a. Compute the predetermined rate for year 2 for use in the current product-costing system using direct labor-hours as the allocation base. b. Compute the per-unit production costs for each model for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement (a). c. Compute the predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the controller's staff to be used in an ABC system d. Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the predetermined rate for year 2 for use in the current product-costing system using direct labor-hours as the allocation base. Predetermined rate ner direct labor-hour Labor costs are based on the contractual rate of $25 per hour. Required: a. Compute the predetermined rate for year 2 for use in the current product-costing system using di base. b. Compute the per-unit production costs for each model for January using direct labor-hours as the predetermined rate computed in requirement (a). c. Compute the predetermined overhead rate for year 2 for each cost driver using the estimated cos prepared by the controller's staff to be used in an ABC system. d. Compute the per unit production costs for each product for January using the cost drivers recomm predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applie the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the per-unit production costs for each model for January using direct labor-hours as the allocatio predetermined rate computed in requirement (a). Note: Do not round intermediate calculations. Round your unit cost answers to two decimal places. Account Silver Gold Platinum Total Direct materials $ 97,500 $ 60,000 $ 37,500 $ 195,000 Direct labor 0 Indirect costs 0 Total cost S 97,500 $ 60,000 $ 37,500 $ 195,000 Units produced Unit cost (rounded) Units shipped Labor costs are based on the contractual rate of $25 per hour. Required: a. Compute the predetermined rate for year 2 for use in the current product-costing syst base. b. Compute the per-unit production costs for each model for January using direct labor-t predetermined rate computed in requirement (a). c. Compute the predetermined overhead rate for year 2 for each cost driver using the es prepared by the controller's staff to be used in an ABC system. d. Compute the per unit production costs for each product for January using the cost dr predetermined rates computed in requirement (c). (Note: Do not assume that total ove the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required d Required D Compute the predetermined overhead rate for year 2 for each cost driver using the estimated units prepared by the controller's staff to be used in an ABC system. Note: Round "Shipping" answer to 2 decimal places and other answers to nearest whole dollar Activity Purchasing material Receiving material Setting up equipment Machine maintenance Ensuring compliance Shipping Rate per order % per run per machine hour per inspection per unit < Required B Required D > ent #8 Chapter 96 nces Number or pruuu Lion un Machine-hours Number of inspections Units shipped 700 0 32,000 5 175 2 100 3 10,000 3,000 Labor costs are based on the contractual rate of $25 per hour. Required: a. Compute the predetermined rate for year 2 for use in the current product-costing system using direct labor-hours as the allo base. b. Compute the per-unit production costs for each model for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement (a). c. Compute the predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost drive prepared by the controller's staff to be used in an ABC system. d. Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant a predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January w the same for activity-based costing as it was for the labor-hour-based allocation.) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) Note: Round your intermediate and final answers to nearest whole dollars. Round unit cost answer to two decimal places. Account Silver Gold Platinum Total Direct materials S 97,500 $ 60,000 $ 37,500 $ 195,000 Direct labor 0 Indirect costs Purchasing material Receiving material Setting up equipment Machine maintenance Ensuring compliance Shipping 0 0 0 0 0 Total indirect costs S Total cost S 76.274 S 97,500 $ 48,896 $ 60,000 $ 44.545 5 169,715 37,500 S 195,000 Units produced Unit cost (rounded)