Marine, Inc., manufactures a product that is available in both a flexble and a rigid model. The company has made the rigid model for years: the flexble model was introduced several years ago to tap a new segment of the market. Since Introduction of the flexble model, the company's profits have steadily declined, and management has become concerned about the accuracy of its costing system Sales of the flexible model have been increasing rapidly Overhead is applied to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that $506,000 in overhead costs would be incurred and the company would produce and sell 1500 units of the flexble model and 8,500 units of the regular model. The flexible model requires 22 hours of direct labor time per unit, and the regular model requires 110 hours. Direct materials and labor costs per unit are given below. Flexible Rigid Direct materials cost per unit $115$60 Direct Labor cost per unit $ 35 $ 10 Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. 1-5. Compute the unit product cost for one unit of each model 2. An Intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea. It came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed as follows: Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests number of requests) Product testing number of tests) Machine related machine-hours) Estimated Overhead Cost $ 21,00 11,000 250.eee Expected Activity Flexible Rigid 110 415 65 210 950 1. ese 1,000 2,200 Total 525 2.000 3.200 $50,000 Compute the activity rate for each of the activity cost pools 3-1. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year 3-6. Using activity-based costing, compute the unit product cost for one unit of each model Complete this question by entering your answers in the tabs below. RGIA Reg 13 Reg2 Rea 3A R38 Compute the unit product cost for one unit of each model 11!! Next ere to search o i Direct materials cost per unit Direct labor cost per unit $115 $ 35 $ 60 $ 10 Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products 1-5. Compute the unit product cost for one unit of each model. 2. An Intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are follows: Expected Activity Estimated Activity Cost Pool and Activity Measure Overhead Cost Flexible Rigid Purchase orders (number of orders) $ 21,898 110 415 525 Rework requests (number of requests) 11, 65 210 275 Product testing (number of tests) 250,000 950 1,050 2,600 Machine related (machine-hours) 224,000 1,000 2,200 3,200 $506, eee Total Compute the activity rate for each of the activity cost pools 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year. 3-5. Using activity-based costing, compute the unit product cost for one unit of each model. Conplete this question by entering your answers in the tabs below. Reg 1A Reg 13 Req 2 Red 3A Reg 30 Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. Predetermined overhead rate S 44 per DLH Req 1B > Required: 1a. Compute the predetermined overhead rate using direct labor hours as the basis for allocating overhead costs to 1-b. Compute the unit product cost for one unit of each model. 2 An Inter suggested that the company use activity-based costing to cost its products. A team was formed to Invest came back with the recommendation that four activity cost pools be used. These cost pools and their associated acth follows: Expected Activity Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related machine-hours) Estimated Overhead Cost $ 21,eee 11,690 250, eee 224,000 $506,690 Flexible 110 65 950 1,69 Rigid 415 210 1,050 2,200 Total 525 275 2, eee 3, 2ee Compute the activity rate for each of the activity cost pools. 3a. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the 3-6. Using activity-based costing, compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Reg Reg 13 Rey 2 Reg 3A Reg 38 Compute the unit product cost for one unit of each model: Unit Prodost Cost Flexible Rigid Reg 1A Reg2 1 Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating o 1-5. Compute the unit product cost for one unit of each model. 2. An Intern suggested that the company use activity-based costing to cost its products. A team was came back with the recommendation that four activity cost pools be used. These cost pools and the follows: 56.45 Expected Activity TO Activity Cost Pool and Activity Measure Purchase orders (nunber of orders) Rework requests (nunber of requests) Product testing number of tests) Machine related (machine-hours) Estimated Overhead Cost $ 21,6ee 11,eee 250, eee 224.ee $ 506,000 Flexible 110 65 950 1,800 Rigid 415 210 1,850 2,200 2 3 Compute the activity rate for each of the activity cost pools. 3a. Using activity-based costing, determine the total amount of overhead that would be assigned to 3-5. Using activity-based costing, compute the unit product cost for one unit of each model. ces Complete this question by entering your answers in the tabs below. Rey 11 Rey 18 PEG 2 Red 3A Reg 38 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Purchase orders Rework requests Product testing Machine-related Activity Rate per order per request per test per MH Required: 1-a. Compute the predetermined overhead rate using direct labor hours as the basis for allocating overhead costs to products 1-b. Compute the unit product cost for one unit of each model. 2. An Intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are follows: 10 Expected Activity Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related machine-hours) Estimated Overhead Cost $ 21,690 11,690 250,000 224,000 $506,699 Flexible 110 65 950 1,000 Rigid 415 210 1,050 2,200 Total 525 275 2. Bee 3,200 Compute the activity rate for each of the activity cost pools. 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year 3-5. Using activity-based costing.compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Req Reg 38 Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year. Total Amount of Overhead Flexible Rigid Prev 1 of 1 Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. 1-b. Compute the unit product cost for one unit of each model. 2 An Intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are follows: Expected Activity Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related (machine-hours) Estimated Overhead Cost $ 21,000 11,000 250,000 224,000 $586,000 Flexible 110 65 950 1,000 Rigid 415 210 1,050 2,209 Total 525 275 2,800 3,200 Compute the activity rate for each of the activity cost pools. 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year. 3-6. Using activity-based costing, compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Req 1A Reg 13 Reg 2 Reg 3A Raadio model. (Do not round Intermediate Using activity-based costing, compute the unit product cost for one Req 3B calculations and round your answers to 2 decimal places Unit Product Cost Flexble Rigid