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Wews Profile Picture 9 Top Human Reso Background Image 095 Marine, Inc., manufactures a product that is available in both a flexible and a ngid model. The company has made the ngid model for years, the exible model was introduced several years ago to tap a new segment of the market. Since introduction of the flexible model, the company's profils have steadily declined, and management has become concerned about the accuracy of its costing system. Sales of the exible model have been increasing rapidly Overhead is applied to products on the basis of chrect labor-hours. At the beginning of the current year, management estimated that 5648,000 in overhead costs would be incurred and the company would produce and sell 2000 units of the fexble model and 8.000 units of the regular model. The fexble model requires 24 hours of direct labor time per unit, and the regular model requires 120 hours. Direct materials and tabor costs per unit are given below File Direct materials cost per unit 5120 $65 Direct labor cost per unit $40 les pent Pue Required: 1a Compute the predetermined overhead rate using direct labor hours as the basis for allocating overhead costs to products 15. 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 ideait came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are ested as follows Activity Control and activity Measure Purchase orders (ber of orders) Rework requests (ber of rests) Product testing (ber of tests) Machine related eachine-hours) Ency Estimated Overhead Cost Flexible Nicla Total $ 22,000 120 155 225 12,000 150 220,000 1.000 1,200 2,200 395.000 1.100 3,035 5540,000 4.925 Compute the activity rate for each of the activity cost pools 3- 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 casting compute the unit product cost for one unit of each model Complete this question by entering your answers in the tabs below. RA Res 10 Res 30 Using activity based conting compute the unit product cost for one of each model (Do not found intermediate calculations and round your awers to 2 decimal aces) Cost 261.50 130.00 Type here to search de 095 Marine, Inc., manufactures a product that is available in both a Nexible and angid model. The company has made the rigid modelo years the Texible model was introduced several years ago to tap a new segment of the market. Since introduction of the flexible model the company's profits have steadily declined, and management has become concemned about the accuracy of its costing system Sales of the flexible model have been increasing rapidly. Overhead is appled to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that 5648,000 overhead costs would be incurred and the company would produce and sell 2.000 units of the flexible model and 8,000 units of the regular model. The flexible model requires 24 hours of direct labor time per unit, and the regular model requires 120 hours. Direct materials and labor costs perunt are given below. Pra Flexible 5120 $40 Rigid $ 65 Direct ateriat cu per unit Direct labor cost per unit sarences Required: 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 mat four activity cost pools be used. These cost pools and their associated activities are listed as follow activity. Cost Pool and Activity Measure Purchase orders number of orders) work rett Chuber of requests Product testing number of tests) Marine related machine-hours) Estimated Overhead cost $ 22,000 12.000 220,000 Flexible 120 70 1.000 1.100 Rigid 155 sa 1,200 3.125 Total 275 150 2,200 $646.000 Compute the activity rate for each of the activity cost pools 3a. Using activity based costing, defermine the total amount of overhead that would be assigned to each model for the year 36 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. 1 RA BA Reg 30 Using activity based costing, determine the total amount of overhead that would be assigned to each model for the year TOTAM OV 1 203 200 Type here to search Background image Marine, Inc., manufactures a product that is available in both a flexible and a ngid model. The company has made the rigid model for years the flexible model was introduced several years ago to tap a new segment of the market. Since introduction of the flexible model the company's pronts 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 $648,000 in overhead costs would be incurred and the company would produce and sell 2,000 units of the flexible model and 8,000 units of the regular model The flexible model requires 24 hours of direct labor time per unit, and the regular model requires 120 hours. Direct materials and labor costs per unit are given below. Flexible Rigid Direct materials cost per unit $120 $65 Direct labor cost per unit 1.40 515 Required: 1a Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products 1-6. 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 investigate this idea. Il came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are isted as follows Activity Cont Pool and Activity Measure Purchase orders (number of orders) Rework recuests Cumbers requests) Product testing number of tests) Machine related machine-hours) Estimated Overed Cost $ 22,000 12,000 220,000 394.000 3645.000 Expected Activity Flexible Rigid Total 128 155 275 70 80 150 1,000 1,200 2,200 1,100 3,825 4,925 Compute the activity rate for each of the activity cast pools 3. 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. Reg 1A R16 Reg 2 Rea SA Re 30 Compute the unit product cost for one unit of each model Unit Product Flexible 250 125 5 Se here to search E