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I need help solving the QUESTION (B). Sarah works for a company that makes and sells vases, and she just completed the preliminary gross margin
I need help solving the QUESTION (B).
Sarah works for a company that makes and sells vases, and she just completed the preliminary gross margin analysis related to the recently completed fiscal year. She followed past practice and allocated MOH costs using a plant-wide rate based on DL hours. The company makes two varieties of vases: Sturdy and Delicate. Sarah wasn't convinced that using a single plant-wide rate was the best way to go. So she divided the company's MOH costs into three categories according to common descriptions noted in the accounting system: molding (driven by DL hours), polishing (driven by machine hours), and packaging (driven by packaging hours). She gathered the following information to assist in her analysis. Calculate the single plant-wide rate that Sarah must have calculated and then allocate MOH costs to the two products using that rate. (Round plant-wide rate to 2 decimal places, e.g. 15.25.) Plant-wide rate 5 /DL hour Determine the total product cost per unit for each type of vase under this approach. (Round answers to 2 decimal places, eg. 15.25.) Calculate the activity-based rates using the more detailed information she gathered. (Round answers to 2 decimal places, eg. 15.25.) Allocate MOH costs to the two products using these ABC rates. MOH Applied to Sturdy Vase MOH Applied to Delicate Vase Determine the total product cost per unit for each type of vase under this approach. (Round answers to 2 decimal places, e.g. 15.25.)Step by Step Solution
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