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Need help with A1,A2& B EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed
Need help with A1,A2& B
EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 1 hour of direct labor time for Product S. Product Wis produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $722,201 in manufacturing overhead costs and produce 13.700 units of Product W and 68,500 units of Product S during the current year. Unit cost for materials and direct labor are: Direct material Direct labor Products $ 18 Product W $ 30 Required: a-1. Compute the predetermined overhead rate under the current method of allocation. a-2. Determine the unit product cost of each product for the current year. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Products 900 Activity Cost Pool Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued Total Activity Product W 2,080 114 10,750 948 Total Cost $ 262,248 46,209 218,640 195,112 $ 722,201 519 Total 2.980 633 18,220 1,682 7,470 734 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year Complete this question by entering your answers in the tabs below. Reg AS Reg A2 Rega B Compute the predetermined overhead rate under the current method of allocation, (Round your answer to 2 decimal places.) Predetermined overhead rain - per DLH Re A2 > Step by Step Solution
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