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Just need help for Req 2B, all the answers provided for the rest are at the bottom. Thank you. All answers found: Req 1A: Predetermine
Just need help for Req 2B, all the answers provided for the rest are at the bottom. Thank you.
All answers found:
Req 1A: Predetermine overhead rate: $4.10 per DL$
Req 1B: Unit product cost for EX300: $14.85, TX500=$30.73
Req 2A:
Activity cost pool | Activity rate
machining $1.05 per MHR
setups $500 per setup hour
product level $101,200 per product
general factory $0.49 per DL$
Req 2B: ?
Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 70,000 units of EX300 and 13,500 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating the company's two product lines is shown below: The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.)Step by Step Solution
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