need help finding "overhead"
Problem 5-45 (Algo) Volume-Based Costing versus ABC [L.O 5-1, 5-3, 5-5) The following infomation applies to the questions displayed beiow] ADA Pharmaceutical Company produces three drugs-Diomycin. Homycin, and Addolin-belonging to the anaigesic (pain-killen) family of medication, Since its incepton four years ago. ADA has used a direct labor hour-based system to assign manufacturing overhead costs to products. Eme Weissman, the president of ADA Pharmaceutical, has just read about activity-based costing in a trade journal With some curlosity and interest, she asked her financial controllet, Takedo Simon, to examine differences in product costs between the firm's current costing and activity-based costing systems. ADA has the following budget information for the year: ADA has identified the following activities and cost drivers and has assigned them a total overhead cost of $204,500. Takedo selected the cost drivers with the following justifications: SETUP. HOURS: The cost driver of setup hours is used because the same product takes about the same amount of setup time regardless of size of batch. For different products, however, the setup time varies. NUMBER OF WORKERS: Plant management includes plant maintenance and corresponding manageriat duties that make Takedo selected the cost divers with the following justifications: SETUP HOURS. The cost driver of setup hours is used because the same product takes about the same amount of setup time regardless of size of batch. For different products, however, the setup time varies. NUMBER OF WORKERS: Plant management includes plant maintenance and corresponding managerial duties that make production possible. This activity depends on the number of workers. The more workers involved, the higher the cost. DIRECT LABOR HOURS: Supervisors spend their time supervising production. The amount of time they spend an each product is proportional to the direct labor hours worked. INSPECTION HOURS: Inspection involves testing a number of units in a batch. The time varies for different products but is the same for all similar products. NUMBER OF CUSTOMERS SERVED: The need to expedite production increases as the number of customers served by the company increases. Thus, the number of customers served by ADA is a good measure of expediting production ordetsi Takedo cgathered the following information about the cost diver volume for each product Part 1 (Algo) Required: 1. Use the fim's curtent direct labor hour-based costing system to calculate the unit cost of each product. Use the oct 2. Use the octivity-based costing system to calculote the unit cost of each product. Required: 1. Use the firm's current direct labor hour-based costing system to calculate the unit cost of each product. 2. Use the activity-based costing system to calculate the unit cost of each product. Complete this question by entering your answers in the tabs below. USe the activity-based costing system to calculate the unit cost of each product. (Round intermediate calculations to 2 decimal places. Round "Cost per copsule" to 2 decimal places.)
