MANAGERIAL ACCOUNTING

The following information relates to Questions 7 through 17 Monrovia Bike Corporation manufactures two products, Products X and Y. Monrovia plans to make 500 units of X and 200 units of Y. The following information is given: Direct material cost per unit of product is $100 for X; and $230 for Y is $240 for X: and $400 for Y b. Direct labor cost c. 1.2 direct labor hours are nooded to make one unit of Product X; 2 direct labor hours for Y d. The total amount of estimated overhead cost is $230,000 e. The company is expected to use a total of 1,000 direct labor hours (O) Assume that the company applies overhead on the basis of direct labor hours 7. Compute the predetermined overhead rate. Calculate the unit product cost of Product X 9 Calculate the unit product cost of Product Y (ii) Use the information on top of the page, Assume that the company uses an activity-based costing system with two activity cost pools. The following additional information is given: Overhead Ct Budgeted 5180,000 9,000 machine hours 100 setups S 50.000 Actual activities for the year for the two models of bicycles were as follows: Machine Hours Used Number of Setups Used 3,000 60 6.000 40 In answering ollowing questions, you can use either of the formats provided on the next two pages If vou show your work there, cven though your answers are incorrect, you will get partial credit. 10. Calculate the activity rates (predetermined overhead rate) for the Processing activity Cakculate the activity rates (predetermined overhead rate) for the Setup activity 12-1 Calculate the processing activity required (how many MHs?) per unit of product X. 12-2. 13. 14. Calculate the setup activity required (how many setups?) per unit of produet X. Calculate the amount of overhead cost per unit for Product X. Calculate the unit product cost of Product X. 15-1 Calculate the processing activity required (how many MHs?) per unit of product Y. 15-2. 16. 17 Calculate the setup activity required (how many setups?) per unit of product Y. Calculate the amount of overhead cost per unit for Product Y Calculate the unit product cost of Product Y