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not by handwriting please and asap Apple Company phones. The company uses a normal cost system and overhead costs are currently allocated using a plant-wide
not by handwriting please and asap
Apple Company phones. The company uses a normal cost system and overhead costs are currently allocated using a plant-wide overhead rate based on direct labor hours. Outside cost consultants have recommended, however, that the company use activity-based costing to charge overhead to products. The company expects to produce 4,000 computer parts and 2,000 cell phones in 2019. Each computer part requires two direct labor hours to produce and each cell phone requires-half hour to produce. The direct material and direct labor costs included in the two products are as follows: Computer Item Part Cell-Phone Direct Material (per S30 $17 unit) Direct Labor (per unit) $16 $4 Budgeted (Estimated) Total Factory Overhead Data For 2019: Activity Budgeted Overhead Dollars $80,000 Estimated Volume Level 20 setups Production Setups Material Handling $70,000 5,000 lbs. $120.000 Packaging and Shipping 6,000 boxes Total Factory Overhead $270,000 Based on an analysis of the three overhead activities, it was estimated that the two products Based on an analysis of the three overhead activities, it was estimated that the two products would require these activities as follows in 2019: Activity Computer Parts 5 setups Cell Phones Overall Totals 20 setups Production Setups 15 setups Material Handling 1,000 lbs. 4,000 lbs. 5,000 lbs. Packaging and Shipping 4,000 boxes 2,000 boxes 6,000 boxes Required: Calculate the cost for the two products using an activity-based costing system (ABC)
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