is representative, manufacturing overhead totaled $2,064,000 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows: Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for fast year are a: follows: Required: a. How much overhead will be assigned to cach product if these three cost drivers are used to allocate overhead? What is the fotal cost per unit produced for each product? b. How much overhead will be assigned to each product if direct labor cost is used to alocate overhead? What is the toral cost per unit oroduced for each product? Exercise 9.41 (Algo) Activity-Based versus Traditional Costing (LO 9.4, 5, 6) Abury Coliee Enterprises (ACE) manufactures two models of colfee grinders. Personal and Comrnerchal The Personal ginders hive a smaler capacify and are less dutable than the Commercial grinders. ACE only recently began producing the Cammercial model. Since the introduction of the new product, profits have been steadily declining, although sales have been increasing The management at arc helimes that the problem miaht be in how the accounting system allocates costs to products The current system at ACE allocates manufactuing over head to products based on direct labor costs. Fon the most recentyean which is representatve, manufacturng overhead totaled $2,064,000 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows. Manogemeot has determined that averhead costs are coused by three cost divers. These divers and their cokts for lant year are m follows: Complete this question by entering your answer in the tabs below. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? Note: Round "Total Cost per Unit" to 2 decimal places. Complete this question by entering your answers in the tabs below. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Note: Round "Total Cost per Unit" to 2 decimal places. is representative, manufacturing overhead totaled $2,064,000 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows: Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for fast year are a: follows: Required: a. How much overhead will be assigned to cach product if these three cost drivers are used to allocate overhead? What is the fotal cost per unit produced for each product? b. How much overhead will be assigned to each product if direct labor cost is used to alocate overhead? What is the toral cost per unit oroduced for each product? Exercise 9.41 (Algo) Activity-Based versus Traditional Costing (LO 9.4, 5, 6) Abury Coliee Enterprises (ACE) manufactures two models of colfee grinders. Personal and Comrnerchal The Personal ginders hive a smaler capacify and are less dutable than the Commercial grinders. ACE only recently began producing the Cammercial model. Since the introduction of the new product, profits have been steadily declining, although sales have been increasing The management at arc helimes that the problem miaht be in how the accounting system allocates costs to products The current system at ACE allocates manufactuing over head to products based on direct labor costs. Fon the most recentyean which is representatve, manufacturng overhead totaled $2,064,000 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows. Manogemeot has determined that averhead costs are coused by three cost divers. These divers and their cokts for lant year are m follows: Complete this question by entering your answer in the tabs below. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? Note: Round "Total Cost per Unit" to 2 decimal places. Complete this question by entering your answers in the tabs below. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Note: Round "Total Cost per Unit" to 2 decimal places
