G H Q fx omlum have supported more than 30 kinds of privileges, Buy now and enjoy the first 7 days for free! Buy Now B c D E F .Calculation of Activity Rate Activity activity Activity Costs Capacity fachine setups Setups Assembly Machine hours nspecting No of inspections Packing products - Units produced General factory admin Labor hours Activity Rate - per sclup per machine hour per inspection per unit per labor hour b. Calculation of total overhead allocated to Premier and Deluxe Premium Activity usare x rate Overhead Allocatied to Premium Deluxe Activity usage x rate Overhead Allocatied to Deluxe Activity Machine setups Assembly Inspecting Packaging products General factory admin Total overhead allocated c. Calculation of overhead cost per watch: Overhead No. of watches Premium Deluxe per watch per watch d. Unit cost of a watch Premium Deluxe Direct materials Direct labor Overhead Total unit cost Cost sheet + Sheets Income Statement ACC2311 FALL 2021 PROJECT DUE MON NOV 22, 2021 World Time Company produces two watches, Premium and Deluxe that sells for $123 und $108 respectively. In 2020 the company produced and sold 15.000 Premium and 10,000 Deluxe watches Manufacturing overhead costs for 2020 was $900,000. Below are the direct costs of Premium and Deluxe. Worst Time would like to use Activity Based Costing to allocate its manufacturing overhead costs Direct Manufacturing costs per watch Premium Deluxe Direct materials $600,000 $300,000 Direct labor $195,000 $120,000 The following information is for Activity Based Costing (ABC) Activity Machine setups Assembly Inspecting Packaging products Factory administration Activity Activity Activity Cost Driver Capacity $240,000 Setups 1.300 setups 350,000 Machine hours 50,000 machine hours 100,000 Inspections 400 inspections 60,000 Units produced 25,000 units produced 150,000 Labor hours 30,000 labor hours $900,000 Use of Activity Premium Deluxe 500 1,000 setups 30,000 20,000 machine hrs. 100 300 inspections 15.000 10,000 units produced 18.000 12,000 labor hours 3.000 Selected account balances for the year ended December 31, 2020 Research and Development expense 120,000 Salaries payable 8,000 Depreciation of office equipment 30,000 Unearned Rent Revenue 4,000 Selling expense 110,000 Prepaid advertising 6,000 Administrative expense 115,000 Short-term investments 6,500 Restructuring costs 20,000 Interest expense 2.300 Dividend paid Accumulated depreciation, office equipment.... 60.000 Common stock 125,000 Loss on sale of investments... 2.500 Required: a. Calculate the activity rate for each activity driver (round to two decimal points if necessary) Compute the total overhead allocated to Premier and Deluxe Watch 6. Compute the per unit overhead for each watch d. Calculate the unit cost of each watch using Activity-Based Costing (round to two decimal points if necessary) 6. Prepare World Time multiple step income statement for the year ended December 31, 2020 Words: 488 Spell Check Compatibility Mode O Local backup on - umn: 36
