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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
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 $ 34,800 $ 46,800 $ 81,600 Direct labor 11,600 31,200 42,800 Overhead (using plantwide rate) 41,400 79,400 120,800 Total product cost $ 87,800 $ 157,400 $ 245,200 Units produced 11,600 15,600 Product cost per unit $ 7.57 $ 10.09 Northwest's controller wants to apply activity-based costing to allocate the $120,800 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 Usage Activity Budgeted Cost Activity Cost Driver Rounded Edge Squared Edge Total Purchasing $ 6,200 Purchase orders 149 orders 471 orders 620 orders Depreciation of machinery 63,000 Machine hours 500 hours 1,500 hours 2,000 hours Setup 51,600 Setups 40 setups 210 setups 250 setups Total $ 120,800 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 activitybased 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. utenswa. H n__..=.t__.-. a n__..:.t_4-. E Activity Usage Activity Budgeted Cost Activity Cost Driver Rounded Edge Squared Edge Total. Purchasing $ 6,200 Purchase orders 149 orders 471 orders 620 orders Depreciation of machinery 63,000 Machine hours 500 hours 1,500 hours 2,000 hours Setup 51,600 Setups 40 setups 210 setups 250 setups Total $ 120,800 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 calculations and nal answers to 2 decimal places.) Rounded Edge Squared Edge
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