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Iljroblem #3 {Activity-Based Costing) Anderson Company manufactures two products, for which the following estimated information for next year is available. Standard Deluxe Selling Price $125

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Iljroblem #3 {Activity-Based Costing) Anderson Company manufactures two products, for which the following estimated information for next year is available. Standard Deluxe Selling Price $125 $195 Number of Units Produced 15,000 5,000 Prime Cost per Unit $85 $125 DLH per unit 2 1 Machine hours (total) 2,000 2,000 Units per batch 30 10 Number of setup hours per batch 1 4 Number of moves per batch 3 1 Engineering Support Hours (total) 3,000 2,000 Anderson Company uses an activity-based costing system. The company produces Standard Model and Deluxe Model. Anderson Company has used activity based costing to assign costs to Standard Models and Deluxe Model as given in the table below: drivers ' drivers rate on ratiost1 Il- -l- Engineering support $ 300,000 hours .160000 - Requirements: 1. Assign OH cost for Standard Model using activity rates (show your work). 2. Assign OH cost for Deluxe Model using consumption ratios (show your work). 3. Determine the gross prot (per unit) of the Standard and Deluxe models using the ABC information. Standard Deluxe

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