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41. Internet Project: Automation and Overhead Allocation. Over the past several decades, manufacturing companies have tended to move away from direct labor and more toward automation (that is, using machinery rather than people to produce products). Required: a. Use the Internet to find several examples of companies that have made the shift toward an automated production environment. Write a one-page summary of your findings, and include specific information indicating what type of automation is being used. b. How might this shift to automation affect the allocation base used to allocate overhead to products? Score Summer 2021 41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management a. The cost per unit for direct materials is calculated as follows: Answer for Desk Table Desk is: Total direct material costs (a) Incorrect Units produced (b) units units Incorrect Direct material cost per unit (a) = (b) $190 per unit Incorrect Answer for Table is: Incorrect Incorrect per unit Correct The cost per unit for direct labor is as follows: Desk Table Incorrect Incorrect Total direct labor costs (C) Units produced (d) Direct labor cost per unit (C) + (d) units Incorrect units Incorrect S160 per unit Incorrect per unit Correct b. (1) The rate is calculated as: Estimated overhead cost estimated overhead Incorrect Estimated activity in allocation base estiniated direct labor costs Incorrect 300% of direct labor costs Answer for Answer for Desk Table Desk is: Table is: Direct labor cost per unit calculated above (e) Incorrect Incorrect Overhead rate as % of direct labor cost Incorrect Incorrect Overhead cost per unit (C) x (1) per unit $480 per unit Incorrect Correct (2 Per unit product costs are calculated as follows: Desk Table Direct materials (from parta) Direct labor (from parta) Overhead Total product cost per unit Incorrect Incorrect Incorrect Incorrect Incorrect Incorrect per unit $830 per unit incorrect Correct 41. Internet Project: Automation and Overhead Allocation. Over the past several decades, manufacturing companies have tended to move away from direct labor and more toward automation (that is, using machinery rather than people to produce products). Required: a. Use the Internet to find several examples of companies that have made the shift toward an automated production environment. Write a one-page summary of your findings, and include specific information indicating what type of automation is being used. b. How might this shift to automation affect the allocation base used to allocate overhead to products? Score Summer 2021 41. Activity-Based Costing Versus Traditional Approach, Activity-Based Management a. The cost per unit for direct materials is calculated as follows: Answer for Desk Table Desk is: Total direct material costs (a) Incorrect Units produced (b) units units Incorrect Direct material cost per unit (a) = (b) $190 per unit Incorrect Answer for Table is: Incorrect Incorrect per unit Correct The cost per unit for direct labor is as follows: Desk Table Incorrect Incorrect Total direct labor costs (C) Units produced (d) Direct labor cost per unit (C) + (d) units Incorrect units Incorrect S160 per unit Incorrect per unit Correct b. (1) The rate is calculated as: Estimated overhead cost estimated overhead Incorrect Estimated activity in allocation base estiniated direct labor costs Incorrect 300% of direct labor costs Answer for Answer for Desk Table Desk is: Table is: Direct labor cost per unit calculated above (e) Incorrect Incorrect Overhead rate as % of direct labor cost Incorrect Incorrect Overhead cost per unit (C) x (1) per unit $480 per unit Incorrect Correct (2 Per unit product costs are calculated as follows: Desk Table Direct materials (from parta) Direct labor (from parta) Overhead Total product cost per unit Incorrect Incorrect Incorrect Incorrect Incorrect Incorrect per unit $830 per unit incorrect Correct