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Need help with this question. M4 Engineering Inc. is considering a change to activity-based product costing. The company produces two products, helicopters and airplanes, in

Need help with this question.

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M4 Engineering Inc. is considering a change to activity-based product costing. The company produces two products, helicopters and airplanes, in a single production department. The production department is estimated to require 2,000 direct labor hours. The total indirect labor is budgeted to be $500,000. Time records from indirect labor employees revealed that they spent 25% of their time setting up production runs and 15% of theirtime supporting actual production. The following information about helicopters and airplanes was determined om the corporate records: Number of Direct Labor Units Setup_s Hours Helicopters 2,200 1,200 10,000 Airplanes Am 10,000 Total 30.0.0 2.09.11 20.11.00 1. Determine the indirect labor cost per unit allocated to helicopters and airplanes under a single plantwide factory overhead rate system using the direct labor hours as the allocation base. Indirect Labor Plantwide Allocation Base Si e Plantwide Rate Helicopters Airplanes 2. Determine the budgeted activity costs and activity rates for the indirect labor under activity-based costing. Assume two activitiesone for setup and the other for production support. Activity-based rates: Production Setup Support Budgeted activity cost Activity base setups dlh Activity rate /setup /dlh 3. Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing. Helicopters Activity-Base Activity Activity Activity Usage Rate Cost Setup setup /setup Prod. support ilh dlh Total Units Activity cost per unit Airplanes Activity-Base Activity Activity Activity Usage Rate Cost Setup setups /setup Prod support dlh dlh Total Units Activity cost per unit

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