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heres question 2. i did little bit work on here but have no clue. plz help me out of here :( Problem 2 20 points

heres question 2. i did little bit work on here but have no clue. plz help me out of here :(

image text in transcribed Problem 2 20 points Use the following data: Estimated Overhead Activity Cost Pool Purchasing Receiving Assembling Testing Finishing Packing and shipping $60,000 40,000 200,000 50,000 100,000 70,000 $520,000 Number of Units Curlers Expected Use of Drivers 200 700 5,000 2,000 70,000 2,000 Dryers Expected Use of Drivers Total Activity 300 500 Orders 900 1,600 Pounds 15,000 20,000 Number of Parts 3,000 5,000 Number of Tests 30,000 100,000 D. L. Hours 5,000 7,000 Cartons 50,000 40,000 Part 1 - Plantwide MOH and Unit cost A. Based on the estimated 100,000 direct labor hours and the estimated MOH of $520,000, what would the plantwide application rate be per direct labor hour? $520000/100000 DL hours $5.20 / DL hours B. Get a cost PER UNIT for the Curler and Dryer. Apply MOH based on your application rate above, and assume it takes 1 Direct Labor hour for the Curler, and 2 Direct Labor hours for the Dryer. Products Manufacturing Costs Direct Materials per unit Direct Labor per unit MOH per unit Total Unit Cost Curler $5.00 $8.00 $5.20 $18.20 Dryer $9.00 $16.00 $10.40 $35.40 Part 2 - Activity based MOH and Unit Cost A. Determine the MOH rate per unit for the Curler and Dryer Activity Cost Pool Purchasing Receiving Assembling Testing Finishing Packing and shipping Estimated Overhead $60,000 $40,000 $200,000 $50,000 $100,000 $70,000 Expected Use of Drivers in total 500 Orders 1,600 200,000 5,000 10,000 7,000 Activity-Based Overhead Rate = $120.00 $25.00 $1.00 $10.00 $10.00 $10.00 = Pounds Number of Parts Number of Tests D.L. hours Cartons = = = = = Curler Activity Cost Pool Purchasing Receiving Assembling Testing Finishing Packing and shipping Total costs assigned Units produced Overhead cost per unit Expected Use of Drivers 200 700 5,000 2,000 70,000 2,000 Pounds Number of Parts Number of Tests D. L. Hours Cartons Dryer ActivityBased Overhead Rates $120.00 $25.00 $1.00 $10.00 $10.00 $10.00 Expected Use of Drivers Cost Assigned $2 $28 $5,000 $200 $7,000 $200 300 900 15,000 3,000 30,000 5,000 B. Get a cost PER UNIT for the Curler and Dryer. Products Manufacturing Costs Direct Materials per unit Direct Labor per unit MOH per unit Total Unit Cost Orders Curler $5.00 $8.00 Dryer $9.00 $16.00 ActivityBased Overhead Rates $120.00 $25.00 $1.00 $10.00 $10.00 $10.00 Cost Assigned $3 $36 $15,000 $300 $3,000 $500 Problem 3 Use the following data: Produced & Sold Variable expense per unit Selling price per unit 10 points Blenders Coffee Makers 50,000 20,000 units $10 $20 $18 $50 Fixed costs = $120,000 of which $40,000 can be avoided if the blenders are not produced and $50,000 avoided if the coffee makers are not produced. 1. Prepare segmented Income statement separating direct and common fixed costs Sales Less: Variable cost of goods sold Contribution margin Less: Direct fixed expenses Segment margin Less: Common fixed expenses Operating income Blenders Coffee Makers $900,000 $1,000,000 -500,000 -400,000 400,000 600,000 -40000 -50000 360,000 550,000 Total $1,900,000 -900,000 1,000,000 -90000 910,000 -30000 $ 880,000

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