Mailings Review View Help Zbesona Electronics Company in Hangzhou, China, plans to use activity-based costing to determine its product costs. It presently uses a single plantwide factory overhead rate for allocating factory overhead to products, based on direct labor hours. The total factory overhead cost is as follows (currency unit in Chinese RMB, Y): Department Factory Overhead Production Support 1,225,000 Production (factory overhead only) 175.000 Total cost 1.400.000 The company determined that it performed four major activities in the Production Support Department. The budgeted activity costs are as follows: Production Support Department Budgeted Activity Cost Setup Production control Quality control Materials management Total \ 428,750 245,000 183,750 367 500 1.225.000 Zbedong estimated the following activity-base usage and units produced for each of its three products Products Number of Unit Direct Labor Production Orders Inspection URDITV Requisitos 130 Se Tot TH 000 Instructions 1. Determine the factory overhead cost per unit for the LCD TV tablet and smartphone under the single plantwide factory overhead rate method. Use direct labor hours as the activity base 2. Determine the factory overhead cost per unit for the LCD TV tablet and smartphone under activity-based costing Round your answers to two decimal places 3. Which method provides more accurate product costing? Why? Mailings Review View Help Zbesona Electronics Company in Hangzhou, China, plans to use activity-based costing to determine its product costs. It presently uses a single plantwide factory overhead rate for allocating factory overhead to products, based on direct labor hours. The total factory overhead cost is as follows (currency unit in Chinese RMB, Y): Department Factory Overhead Production Support 1,225,000 Production (factory overhead only) 175.000 Total cost 1.400.000 The company determined that it performed four major activities in the Production Support Department. The budgeted activity costs are as follows: Production Support Department Budgeted Activity Cost Setup Production control Quality control Materials management Total \ 428,750 245,000 183,750 367 500 1.225.000 Zbedong estimated the following activity-base usage and units produced for each of its three products Products Number of Unit Direct Labor Production Orders Inspection URDITV Requisitos 130 Se Tot TH 000 Instructions 1. Determine the factory overhead cost per unit for the LCD TV tablet and smartphone under the single plantwide factory overhead rate method. Use direct labor hours as the activity base 2. Determine the factory overhead cost per unit for the LCD TV tablet and smartphone under activity-based costing Round your answers to two decimal places 3. Which method provides more accurate product costing? Why
