managerial accounting

Tahoe Manufacturing makes two products, titanium Hubs and Sprockets. Data regarding the two products follows: Hubs Sprockets DLHrs per unit 0.80 0.40 Annual Production 10.000 40,000 Additional information about the company follows: Hubs required $32 in direct materials per unit and Sprockets require $18. The direct labor wage rate is $15 per hour. Hubs are more complex to manufacture than Sprockets and they require special equipment. In preparation for an ABC system, the company has developed the following activity cost pools. Activity Cost Pool Activity Measure Activity Total Activity - Hubs Activity- Sprockets Estimated Overhead Costs $72,000 400 100 300 $200,000 5,000 5,000 Machine Setups Special Processing General Factory Number of setups Machine hours Direct labor hours $816,000 24,000 8,000 16,000 Required: a Compute the predetermined overhead using direct labor hours as the base b. Determine the unit cost of each product under traditional costing methods. c. Using the above table, compute activity rates for the activity cost pools and determine the total overhead assigned to each product using ABC. d. Determine the unit cost of each product under ABC. e. Explain the unit cost differences. 7. What is the predetermined overhead rate (POHR)? (Two decimal places) 8. What is the unit cost of the sprocket using traditional costing methods? (Two decimal places) 9. What is the cost of the hub using activity-based costing? (Two decimal places) 10. What is the cost of the sprocket using activity-based costing? (Two decimal places)