Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ive tried everything but its still saying my answers are incorrect. cost per unit must be rounded to 2 decimal places and total cost to
ive tried everything but its still saying my answers are incorrect. cost per unit must be rounded to 2 decimal places and total cost to nearest whole dollar amount.
Check my work Stuart Electronics produces video games in three market categories: commercial, home, and miniature. Stuart has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system Ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers Category Total Pooled Coat Types of Contu Coat Driver Unit 5420.000 Indirect labor vagon, applies, factory utilities Machine hours machine maintenance Batch 239, 400 Material handling, inventory storage, labor for Number of production order setups, packaging, labeling and shipping, scheduling Product 120,600 Research and development Time spent by research department Facility 315.000 Hent, general utilities, maintenance, facility Square footage depreciation, admin. salaries Additional data for each of the product lines follow: Total Comercial $ 25-15/unit $10.75/hour 6.000 Direct materiale cont Direct labor cost her o labor hours Number of sachine hours Number of production orders mesech and development to Sumber of units Buate footage 10,000 200 108 15,000 20.000 Hone S 15. 15/unit $ 8.75/hour 12,000 45,000 2.000 301 45,000 50,000 12.35/unit $9.75/hour 2.000 25.000 800 708 1.000 30,000 20,000 BO,000 3.000 100 74.000 100,000 Check my work ber of machine hours Number of production order Research and development time Number of units square footage 10,000 200 101 15.000 20,000 ww 45.000 2.000 200 45.000 50,000 25,000 800 700 14,000 30.000 80,000 3.000 1000 74,000 100,000 Required a. Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines b. Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines. (For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost to the nearest whole dollar amount.) Total Cost Couter Unit Type of Product Commercial Home Miniature Combined total Commercial Home Minum Combined total $ 0 $ Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started