Question
ok Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Product x200
ok Ellix Company manufactures two models of ultra-high fidelity speakers-the X200 model and the X99 model. Data regarding the two products follow: Product x200 X99 Direct Labor-Hours 0.6 DLs per unit 0.8 DLs per unit Annual Production Total Direct Labor-Hours 22,000 units 36,000 units 13,200 DLH 28,800 DLH 42,000 DLHS Additional information about the company follows: a. Model X200 requires $40 in direct materials per unit, and model X99 requires $26. b. The direct labor workers are paid $40 per hour. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment. e. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Estimated Total Activity Coat Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Cost X200 $177,500 360,400 Direct labor-hours 2,940,000 $3,477,900 100 1,060 13,200 Estimated Total Activity X99 150 Total 250 0 1,060 28,800 42,000 Required: 1. Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. a. Compute the plantwide predetermined overhead rate. b. Compute the unit product cost of each model. 2. Assume that the company decides to use activity-based absorption costing to apply overhead cost to products. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activity-based approach. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Req 1A Req 18- Req 2A Part 1 Req 2A Part 2 Req 28 Assume that the company continues to use direct labor-hours as the allocation base for applying overhead cost to products. Compute the plantwide predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Reg IA Req 18 >
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