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19 Problem 4-15 Contrasting ABC and Conventional Product Costs (L04-2, LO4-3, LO4-4) 095 Manne. In manufactures product that is available in both a flexible and angid model. The company has made the rigid more years, the feable model was extroduced several years ago to tapo new segment of the market Since Introduction of the model, the company's profies have steadily declined, and management has become concerned about the accuracy of scoting system Sales of the flexible model have been increasing rapidly Overhead is opoled to products on the basis of direct labor hours. At the beginning of the current yeat management estimated that 5648.000 in overhead costs would be cured and the company would produce and sell 2000 units of the nexible model and 8.000 Gets of the regular modes. The devible model requires 24 hours of direct laborume perunt, and the regular model requtres t 29 Hours Direct materials and labor costs per tre given below who Direct straust er at Direct Tabor cost per unit die $120 540 RE 56 $15 Required: Compute the predetermined overhead to using direct labor hours as the basis for allocating overhead costs 50 products b. Compute the unit product cost for one of each model 2. An intem suggested that the company use activity based costing to courts products Aream was formed to vigore te idea.it came back with the recommendation than four activity cost pools be used these cost pools and the associated activities are listed as fotos Estimated Overhead cost 13,000 220,000 155 cost old Prers of anders Nors) Product testing of tests) where (chine-hours) 275 1, 1.2 3, 2,200 Compare the two for each of the city cotto 3. Ugoty-based coming termine the amount of meas that would be signed to each model for the year 20 Decting computer Cost for one unt of each model Complete the only enter your answer the talis be Red Type Nere to search Esc R2 C F8 Problem 4-15 Contrasting ABC and Conventional Product Costs (L04-2. L04-3, L04-4 095 Marme in manufactures about mars avaie in dom flexble and a good the comany has made me to years, the exible model was introduced several years ago to tap aw segmencemarket Since traction of the model, the company's profits betonany decline and management has become concerned about the accuracy of con systent Sales of the Tomb vode have been increasing rapidly Overheed is ooted to products on the box ofrect labor hours. At the beginning or created the 5540.000 in vetend costs would be incurred and the company would produce de 2.000 of the ferible mode 3.000 of the regular model The flexible model requires 24 noun or elborte per stand mereu de 120 hours. Direct and labor Coster un wegven below Thes rect strict perit rest where 1130 Required 1o Computer med overhead ingebou the borcang over to orduets - Compute the productos for onent of each 2. Annem suggested that the company ante con cordones gate the come back with the recommend that our octy O Do teules. These costs and there actions as Tollow vostro Farver who testing of dir) 5. et de 13 222 1.00 . Chestefore they la actity Code out of that would be code for the year 36 Maced cong commentform Complete the by entering van in the table contrato Type here to watch Esc Id- References 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead todo 1-b. 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 state came back with the recommendation that four activity cost pools be used. These cost pools and their associate follows: Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests number of requests) Product testing number of tests) Machine related (machine-hours) Estimated Overhead Cost $ 22,000 12,000 220,000 394,000 $648,000 Expected Activity Flexible Ried Total 120 155 -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 cost pools. 3-a. 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 Reg 18 Reg 2 Reg 3A 3B Using activity-based costing, compute the unit product cost for one unit of each model. (Do not round Intermediate calculations and round your answers to 2 decimal places.) Unit Product Cont Flexible Rigid ype here to search eztom education.com/ext/map/index.html con contexternal browser &laudhurl https%253A%252F%252Fnewconnect meducation.com ACC 202-Marks Interviews PSE > Profile Picture % Top Homan Resou. Background image 1-Connea Sunda MSMnet.ro Problem 4-15 Contrasting ABC and Conventional Product Costs (L04-2, L04-3, L04-4] Marine, Inc., manufactures o product that is available in both a flexible and a rigid model. The company has made the rigid modello 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 profits 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 the $648.000 in overhead costs would be incurred and the company would produce and sell 2.000 units of the flexible model and e. 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: Book Direct materials cost per unit Direct labor cost per Flexible $120 $40 Richt 1.65 $15 Print Xerences Required: 1-a Compute the predetermined overhead rate using direct labor hours as the basis for allocating overhead costs to products 1-b. 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 listed as follows: Total 223 Estimated Overhead cost 22.000 12.000 220,000 394 000 Activity Cost Pool and Activity Measure Purchase orders (number of orders) Mework requests (number of request) Product testing (number of tects) Machine related machine hours) Flexible 120 70 1.000 1,100 Rigid 155 00 1,200 3,825 150 2,200 4.925 Compute the activity rate for each of the activity cost pools 3-6 Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year. 3.b. Using activity based costing, compute the unit product cost for one unit of each model Type here to search