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if you don't want to answer the whole question, pls just answer requirement 3 and show the steps. thanks a lot [The following information applies
if you don't want to answer the whole question, pls just answer requirement 3 and show the steps. thanks a lot
[The following information applies to the questions displayed below.] Siegel Company manufactures a product that is available in both a deluxe model and a regular model. The company has manufactured the regular model for years. The deluxe model was introduced several years ago to tap a new segment of the market. Since introduction of the deluxe model, the company's profits have steadily declined and management has become increasingly concerned about the accuracy of its costing system. Sales of the deluxe model have been increasing rapidly. Manufacturing overhead is assigned to products on the basis of direct labor-hours. For the current year, the company has estimated that it will incur $6,509,325 in manufacturing overhead cost and produce 21,000 units of the deluxe model and 110,000 units of the regular model. The deluxe model requires 1.0 hours of direct labor time per unit, and the regular model requires .5 hours. Material and labor costs per unit are as follows Model Deluxe Regular $116 $7 $146 $20 Direct materials Direct labor Requirement 2: Management is considering using activity-based costing to apply manufacturing overhead costs to products for external financial reports. The activity-based costing system would have the following four activity cost pools: Estimated Overhead Cost Activity Cost Pool Purchasing Processing Scrap/rework Shipping Activity Measure Purchase orders issued $345,450 4,417,500 759,375 987,000 $6,509,325 Machine-hours Scrap/rework orders issued Number of shipments Expected Activity Regular 980 27,900 500 Activity Measure Purchase orders issued Machine-hours Total 1,470 46,500 1,125 14,100 Deluxe 490 18,600 625 Scrap/rework orders issued Number of shipments 8,460 5,640 Determine the predetermined overhead rates for each of the four activity cost pools. (Omit the "$" sign in your response.) Activity Cost Pool Purchasing Predetermined Overhead Rate per purchase order $ Processing per machine-hour Scrap/rework $ per order Shipping per shipment Requirement 3: Using the predetermined overhead rates you computed in requirement 2 above, do the following: (a) Compute the total amount of manufacturing overhead cost that would be applied to each model using the activity-based costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit for each model. (Round overhead cost per unit to 2 decimal places. Omit the "$" sign in your response.) The Deluxe Model: Activity Cost Pool Purchasing Overhead Applied Processing Scrap/rework Shipping Total overhead cost Overhead cost per unit $ The Regular Model: Activity Cost Pool Purchasing Overhead Applied $ Processing Scrap/rework Shipping Total overhead cost Overhead cost per unit (b) Compute the unit product cost of each model (direct materials, direct labor, and manufacturing overhead). (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Deluxe Regular Direct materials Direct labor Manufacturing overhead Total unit product costStep by Step Solution
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