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Need help with req B asap EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been
Need help with req B asap
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 2 hour of direct labor time for Product S. Product W is 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 $1,140,940 in manufacturing overhead costs and produce 10,500 units of Product W and 42,000 units of Product S during the current year. Unit cost for materials and direct labor are: Product SProduet w Direct material Direct labor 34 14 s 17 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: Total Activit Total 3,770 693 18,690 1,615 Activity Cost Pool Total Cost 652,210 51,975 112,140 324,615 Products Product W Machine aetups required Purchase orders issued Machine-hours required Maintenance requests issued 1,510 531 7,900 737 2,260 162 10,790 878 $1,140,940 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current yearStep by Step Solution
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