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I just need part two done not part one Homework #2 - IU DULJ Part 1. Cabigas Company manufactures two products, Product C and Product
I just need part two done not part one
Homework #2 - IU DULJ Part 1. Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur $167.140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below: Product C Product D Estimated volume...... 2,000 units 2,700 units Direct labor-hours per unit....... 2.00 hours 0.80 hour Direct materials cost per unit...... $21.50 $24.10 Direct labor cost per unit.. $24.00 $9.60 Required: Compute the predetermined overhead rate under the current method (job order), & determine the unit product cost of each product for the current year. 5 points Part 2. The company is considering using an activity-based costing system to compute unit product costs instead of its traditional system based on direct labor- hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Activities Machine setups....... Purchase orders ...... General factory....... Total ...................... Estimated Overhead Costs $ 13,630 85,750 67.760 $167.140 Expected Activity Product C Product D 130 160 750 1,000 4,000 2,160 Total 290 1,750 6,160 Required: Determine the unit product cost of each product for the current period using the activity-based costing approach. 5 points. Part 2. The company is considering using an activity-based costing system to compute unit product costs instead of its traditional system based on direct labor- hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Activities Machine setups....... Purchase orders General factory....... Total Estimated Overhead Costs $ 13,630 85,750 67,760 $167.140 Expected Activity Product C Product D 130 160 750 1,000 4,000 Total 290 1,750 6,160 TS...... 2,160 Required: Determine the unit product cost of each product for the current period using the activity-based costing approach. 5 points Step by Step Solution
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