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AutoSave C Of H - 7 6 - Document1 - Word Search Sign in File Home Insert Design Layout References Mailings Review View Help Share Comments Question 4.2 (Total: 30 marks Tuggs Corporation manufactures two products, Racket and Table. Table, having been developed as an attempt to enter a market closely related to that of Racket, has been recently created. Of the two products, Table is the more complex one, thus requiring two and a half hours of direct labour time per unit to manufacture, compared to one hour of direct labour time for Racket. The table is produced on an automated production line. On the basis of direct labour hours, Overhead is currently assigned to the products. The company estimated it would incur $364,000 in manufacturing overhead costs and produce 4,900 units of Table and 22,100 units of Racket during the current year. Unit costs for materials and direct labour are as follows: Racket Table Direct materials $9 $20 Direct labour $7 $15 Submission Instructions: 1. Compute the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Expected Activity Activity Cost Pool Estimated Overhead Cost Racket Table Total Machine setups required $161,000 800 700 1,500 Purchase orders issued $32,000 200 150 350 Machine hours required $81,000 3.900 7,000 10,900 Maintenance requests $90,000 310 510 820 issued Total $364,000 2. Determine the unit product cost of each product for the current Screenshot Added year using the data above and an activity-based costing approach. A screenshot was added to your Dropbox. Dropbox Page 2 of 4 539 words DX English (United States) U Focus BE Type here to search O Links ~ ()) ENG 9:13 PM 2021-05-01