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Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours.
Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:
4.00 points Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced Mercon Wurcon $13.10 $ 21.90 $ 5.60 $ 2.30 0.30 25,000 84,000 0.46 These products are customized to some degree for specific customers Required 1. The company's manufacturing overhead costs for the year are expected to be $895,480. Using the company's conventional costing system, compute the unit product costs for the two products. (Do not round intermediate calculation. Round your final answers to 2 decimal places.) Mercon Wurcon Unit product cost 2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: Mercon Wurcon Total Engineering design time (in hours ,500 2,900 5,400 Compute the unit product costs for the two products using the proposed ABC system. (Round your final answers to 2 decimal places.) Mercon Wurcon Unit product cost 2:05 PM 7/4/2016- |"r |-| .illStep by Step Solution
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