me Review View H elp Tell me what you want to do General incertPage Layout Formula Data Calibri vil van opy BIU. . mat Painter .A rol ront Waplert Merge Center - + 5.%. Condition Formatting Alignment Number # im C D E F G H I J K Carolina Industries manufactures two products Product Cand Product D. The company estimated it would incur $160,790 in manufacturing overhead costs during the current period Overhead currently is applied to the products on the basis of direct labour hours. Data concerning the current period's operations appear below Estimated Volume Direct Labour Hours per Unit Direct Materials Cost per Unit Direct Labour Cost per Unit Products 3.400 units 1.40 hour $7.40 $14.00 ProductD 4,800 units 1.90 hours $12.70 $19.00 Required a) Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. (8 Marks) b) The company is considering using an activity based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labour hours The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below Estimated Activity Overhead Cost Pool Costs Machine sunt $12.190 Cover Page 01 02 03 04 Expected Activity Product Product D 0 Total 1 220 Type here to search O e e w ** me Review View H elp Tell me what you want to do General incertPage Layout Formula Data Calibri vil van opy BIU. . mat Painter .A rol ront Waplert Merge Center - + 5.%. Condition Formatting Alignment Number # im C D E F G H I J K Carolina Industries manufactures two products Product Cand Product D. The company estimated it would incur $160,790 in manufacturing overhead costs during the current period Overhead currently is applied to the products on the basis of direct labour hours. Data concerning the current period's operations appear below Estimated Volume Direct Labour Hours per Unit Direct Materials Cost per Unit Direct Labour Cost per Unit Products 3.400 units 1.40 hour $7.40 $14.00 ProductD 4,800 units 1.90 hours $12.70 $19.00 Required a) Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. (8 Marks) b) The company is considering using an activity based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labour hours The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below Estimated Activity Overhead Cost Pool Costs Machine sunt $12.190 Cover Page 01 02 03 04 Expected Activity Product Product D 0 Total 1 220 Type here to search O e e w **