How to use formulas.

A tout Times New Roma. 12 ' BI U HEAA 2.EE ste- Copy Format bilo Merge & Center Wrap Text Currency % 0 8. Conditional Formatting - Buy Now H H16 O fx 160000 WPS Premium have supported more than 30 kinds of privileges, Buy now and enjoy the first 7 days for free! A B D E F G Calculation of Activity Rate Activity Activity Activity Costs Capacity Machine setups $240,000 1,500 Setups Assembly 350,000 50,000 Machine hours Inspecting 100,000 400 No. of inspections Packing products 60,000 25,000 Units produced General factory admin 150.000 30,000 Labor hours $900.000 Activity Rate S160.00 per cup 57.00 per machine hour 525000 per inspection $2.40 per unit $5.00 per labor bour * - b. Cakulation of total overhead allocated to Premier and Deluxe Premium Activity Activity usage rate Machine setups 500 x $100.00 Assembly 30000 x $7.00 Inspecting 100 x $250.00 Packaging products 15000 2.40 General factory admin 18000 $5.00 Total overhead allocated BRO Overhead Allocatie Deluxe to Premium Activity usage rate $80,000 1000 X 160.00 210,000 20000 x 57.00 25,000 100 x $250.00 36,000 10000 x 52.40 20.000 12000 35.00 S441.000 Overhead Allocatie to Deluxe S16000 140,000 75.000 24,000 00.000 $459.000 $29.40 per watch 545.90 per watch c. Calculation of overhead cost per watch: Overhead No. of watches Premium S441007 15000 Deluxe $ 459000 / 10000 d. Unit cost of a watch: Premium Direct materials SV00,000.00 Direct labor 195,000.00 Overhead 441 000.00 Total unit cost SIR26.000.00 Deluxe $300,000.00 120,000.00 459,000.00 S879.000.00 Cost heet Income Statement Sheet 3 + O Local backup on mat 4 R LI 1:1 III Merge & Center - Wrap Text % 8 Buy Now L M N B6 O fx Less: Cost of goods sold WPS Premium have supported more than 30 kinds of privileges, Buy now and enjoy the first 7 days for free! 4A B G J 1 World Time Company 2 "Income Statement 3 For the uear ended December 31, 2020 4 5 Sales 6 Less Cost of goods sold 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 30 31 32 > Cost sheet Income Statement Sheet3 + O local backup on kinds of privileges, Buy now and enjoy the first 7 days for free! Buy Now KCC2311 FALL 2021 PROJECT DUE MON NOV 22, 2001 World Time Company produces two watches, Premium and Deluxe that sells for $123 and 5108 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 WorldTime would like to use Activity Based Costing to allocate its manufacturing overhead costs Direct Manufacturing costs per watch Premium Deluxe Direct materials 5600,000 $300,000 Direct labor $195,000 S120,000 The following information is for Activity Based Costing (ABC) Cost Activity Machine setups Assembly Inspecting Packaging products Factory administration Activity Activity Activity Driver Capacity S240,000 Setups 1.500 staps 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 machines 100 300 inspections 15.000 10,000 units produced 18,000 12.000 labor hours 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 I 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) b. Compute the total overhead allocated to Premier and Deluxe watch c. Compute the per unit overhead for each watch d. Calculate the unit cost of each watch using Activity-Based Costing fround to iwo decimal points if necessary) e. Prepare World Time multiple-step income statement for the year ended December 31, 2020. 3,000 ilil