Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Rounded Edge Squared Edge Total Direct materials $ 31,200 $ 43,280 $ 74,400 Direct labor 10,400 28,800 39,200 Overhead (using plantwide rate) 37,800 73,400 111,200 Total product cost $ 79,400 $ 145,488 $ 224,800 Units produced 10,400 14,400 Product cost per unit $ 7.63 $ 10.10 Northwest's controller wants to apply activity-based costing to allocate the $111.200 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected Activity Usas Activity Budgeted Cost Activity Cost Driver Rounded Edge Squared Edge Purchasing $ 5,600 Purchase orders 119 orders 441 orders Depreciation of machinery 58,200 Machine hours 500 hours 1,500 hours Setup 47, 480 Setups 48 setups 210 setups Total $ 111,200 Required: 1. Compute the activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Budgeted Cost Budgeted Activity Usage Activity Rate Purchasing Depreciation Setup Required 2 > Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data Rounded Edge Squared Edge Total Direct materials $ 31,200 $ 43,200 $ 74,400 Direct labor 10,400 28,800 39,200 Overhead (using plantwide rate) 37,800 73,400 111,200 Total product cost $ 79,400 $ 145,400 $ 224,800 Units produced 10,400 14.400 Product cost per unit $ 7.63 $ 10.10 Northwest's controller wants to apply activity-based costing to allocate the $11,200 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Purchasing Depreciation of machinery Setup Total Budgeted Cost $ 5,600 58,200 47,480 $ 111,200 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 119 orders 500 hours 48 setups Activity Usa Squared Edge 441 orders 1,500 hours 210 setups Required: 1. Compute the activity rate for each activity using activity-based costing 2. Compute overhead cost per unit for each of the two products using activity-based costing. 3. Determine product cost per unit for each of the two products using activity-based costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute overhead cost per unit for each of the two products using activity-based costing. (Round "Activity Rate" to 2 dec places and other answers to the nearest whole dollar amount.) Activity Rate Allocated Cost Overhead cost per unit-Rounded Edge Activity Activity Usage Purchasing Depreciation Setup Total allocated cost Units produced Overhead cost per unit $ 0 0 Activity Usage Activity Rate Allocated Cost Overhead cost per unit-Squared Edge Activity Purchasing Depreciation Setup Total alocated cost Units produced Overhead cost per unit $ 0 0 Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Direct materials Direct labor Overhead (using plantwide rate) Total product cost Units produced Product cost per unit Rounded Edge Squared Edge $ 31,200 $ 43,200 10,400 28,800 37,800 73,400 $ 79,400 $ 145,400 10,400 14,400 $ 7.63 $ 10.10 Total $ 74,400 39,200 111,200 $ 224,800 Northwest's controller wants to apply activity-based costing to allocate the $111,200 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company's budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Purchasing Depreciation of machinery Setup Total Budgeted cost $ 5,600 58,200 47,400 $ 111,200 Activity Cost Driver Purchase orders Machine hours Setups Rounded Edge 119 orders 500 hours 40 setups Activity Usa Squared Edge 441 orders 1,500 hours 210 setups Required: 1. Compute the activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit for each of the two products using activity-based costing, 3. Determine product cost per unit for each of the two products using activity-based costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine product cost per unit for each of the two products using activity-based costing. (Round intermediate calculatior and final answers to 2 decimal places.) Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Rounded Edge Squared Edge
