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Keetee, Inc produces desktop and lsptcg cospaters The company applies manufacturing nerlbend cou to products on the hasis of direct labor hoours Estimaied cost information
Keetee, Inc produces desktop and lsptcg cospaters The company applies manufacturing nerlbend cou to products on the hasis of direct labor hoours Estimaied cost information of these twe products is as folkows Total maisfacturing overhead cuu s 51.300,0 Dinect labr 230 Units produced Direct labor hours per unit 3000 Answer the Sollowing questions I. Compute the predetermined overhcad rase per direct labor hour 2. Compute the total manufacturing overhead cost thet would be ssigned to each product Compune the gross proflt per unit und the gross peolfit margin (s of sales) for each peoduct A Unit-level activities R Batch-Jevel activitic C Prodace-level activities D. Facility or comparywide activities Clasilty the following activities into one of the above categories Enginering and designing a new jet plane 2. Paperwork for ondering and receiving raw materials Lahor for assembing computers Sg cost inut 3, units General and administrative activities 6. Maintenance of production equipment 7. Quality testing performed on each individual unit 8. Accounting and payroll services 9. Creating and testing prototype models Kecbee, Inc prioduces desktop and lapsop computers The conpany currenly es s treditionsl voluttie-bened cost sysiem an firect labor hours Cont lnformation of these two products is s follows manufacturing overhead cost to producta on he banis of 3,000 Direct labow hours y snit Total manufactuaring overbead cost is $1,800,000. The management of Kochce, Inc. is evalaating the possibility of replacing the traditional volume-hased cost Based Costing (ABC) system. Four activity cost pools and activity cost drivers identitied by management as follows system with an Activity Four activity cost pools and activity cost drivers have been Activity Driver Laptop Total Activity Activity Cest Engineering and Machine setup Activity Cost 51,000,000 00,000 160,000 540,000 10,000 Design hours 5,000 5,000 Design hourns 20 Setups 2000 Design hours 5050 Sctups Setups 6,000 8,000 Direct labor hours Direct labor hoursDirect labor hours 8,000 5.500 Quality inspection and testing 2,500 Inspection hours Inspection hours Inspection hours
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