Managerial Accounting using ABC system - I need help with question 4 and 5.

course Contents , Hamewurk problems F510 4s1.prohlein 4 9 Timer 3 Notes ' Evaluate amedhack Prim @tnfo Gaylnrd Corp. manufactures steering wheels for the auto industry. Gaylord makes both a standard steeering wheel with handslevers for adjustments and a deiuxe steering wheel with electronic adjustments and the ability to heat the steering wheel. The company has been using a plantrwide overhead rate based on direct labor hours to allocate its overhead to each model. Tom Smith, the CFO. is convinced that an activityrhased costing [ABC] system viill provide bette formation about the costs and protability of each steering wheel model which should lead to better decisions about whether the company should focus on one model or the other. He has pulled the following information about overhead costs from the past yearand inserted activityrbased costing (ABC) information: Ac Iv Allocatinn Eae Aclivity Cast Allocation Rate Materials handling Number of parts so 50 per part Machine setup Number of setups $350.00 per setup Inspection of parts Number of parts 531.00 per part Finishing Finishing rect labor hours $51.00 standard Deluxe Parts per steering wheel 6.0 0.0 setups per 1,000 steering wheel 20.0 20 Finishing direct laborhours per steering wheel 1.0 3.0 Total direm labor hours per steering wheel 2.7 3.0 The company's managers expect to produce 1,000 units of each model during the upcoming year. Answer the following questions Each question is worth 1 point. 1. Compute the total budgeted manufacturing overhead cost for the upcoming year using ABC information. $743,000 You are correct. . . P I T ' Your receipt no. is 1627306 9 rem\" \"5 2. Compute the manufacturing overhead cost per steering wheel of the standard model using ABC. $203.00 You are correct. P I T Ynur rooeipt no. is 1625994 9 w 3. Compute the manufacturing overhead cost per steering wheel of the deluxe model using eac. $46u.on You are correct. Ynur reoeipt no. is; 162-2333 9 m 4. Compute the manufacturing overhead cost per deiuxe steering wheel using Gaylnrd's traditional plantswide overhead rate. Subrnll Answer Tries 0/10 5. 1f Caylord continues with the traditional method ofallocating manufacturing overhead based on direct labor hours instead of switching to the AnivltyrBased Costing system, by how much will the deluxe steering wheel model be over or underrccsted per unit? Enter an underr costed amount as a negative number and an uverrcasted amount as a positive number. Subrnll Answef Tries 0/10 This discussion is closed. 49 Send Feedbai Type here to search