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It seems simple, but I'm getting it wrong Philip Company produces mathematical and financial calculators and operates at capacity. Data related to the two products
It seems simple, but I'm getting it wrong
Philip Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows. (Click the icon to view the data.) Total manufacturing overhead costs are: (Click the icon to view the overhead costs.) Activity Cost driver Kate Machining Machine-hours $ 4 per machine-hour Set up Production runs $ 1,250 per production run Inspection Inspection-hours $ 75 per inspection-hour Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for ea product 2. Compute the manufacturing cost per unit for each product 3. How might Philip's managers use the new cost Information from its activity-based costing system to better manage its business? i Data Table Determine the formula to calculate the overhead allocated to each product. Indirect-cost rate Product quantity of allocation base Overhead allocated to product Mathematical 50.000 Financial 125.000 Now calculate the total overhead allocated to each product and the overhead cost per unit. (Round your answer to the nearest cent.) S 437,500 Mathematical S 175,000 S 75,000 S 3,000 187,500 Data Table Annual production in units Direct materials cost Direct manufacturing labor cost Direct manufacturing labor-hours Machino-hours Number of production runs Inspection hours Machining costs Setup costs 7.500 40.000 50 Inspection costs 60,000 50 600 Total overhead costs 1,000 Total 400,000 $ Divide by number of units Machining costs Setup costs Inspection costs 125,000 120,000 Print Manufacturing overhead cost per unit Done Choose from any list or enter any number in the input fields and then clicStep by Step Solution
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