ONLY NEED PART C

ew Policies how Attempt History urrent Attempt in Progress Sheridan Manufacturing produces two products in its Saratoga plant, balzene and galvene. Since it opened its doors in 1965, Sheridan has been using a single manufacturing overhead pool to accumulate overhead costs. Overhead has been allocated to products based on direct labor hours. Until recently, Sheridan was the sole producer of galvene in the country and was therefore able to dictate the selling price. However, last year Marcella Products began marketing a comparable product at $58 per unit-a price that is below Sheridan's product cost. Sheridan's market share of galvene has declined rapidly as a result. The company's managers must now decide whether to meet the competitive price or discontinue the product. Sheridan's cost accountant has suggested that the company do an activity-based cost analysis before managers make the decision. The two main indirect costs of manufacturing balzene and galvene are power usage and setup costs. Most of the power usage occurs in the fabricating departments most of the setup costs are incurred in the assembly department Setup costs are incurred predominantly in the production of balzene. The fabricating department has identified machine hours as the appropriate cost driver: the assembly department has identified setups as the appropriate cost driver. Direct labor rates are the same in both departments, H The combined budget for manufacturing is as follows. Total OM Balzene 18.000 1 hours per unit 500 berunit Number of unit Direct labor Direct material Overhead Indirect labor READY Galvene 18000 2 hours bent Sunt 51 080.000 550.000 Fringe benefits Indirect materials Power Setup Quality assurance Other utilities Depreciation 18,000 31,000 180,000 90,000 25,000 20,000 30,000 The cost accountant has prepared the following estimates of overhead usage by the two departments: Indirect labor Fringe benefits Indirect materials Power Setup Quality assurance Other utilities Depreciation Fabricating 75% 7096 $20.000 $100.650 $20.000 6596 6096 80 Assembly 2596 3096 $11.000 $79.350 570.000 3590 4098 2096 Activity Base Usage Balzene Galvene Machine Hours MHE 6 Hun Setups 1.000 READY (a) Your answer is correct. Calculate the unit costs of balzene and galvene using the current overhead allocation basis of direct labor hours. (Round overhead rate and final answers to 2 decimal places, eg. 15.25.) Balzene Galvene Cost per unit 38.75 $ 65.5 e Textbook and Media Attempts: 2 of 3 used READY o tarih (b) Your answer is correct. Calculate the amount of overhead cost assigned to the Fabricating and Assembly activity cost pools using the cost accountant's estimates. Determine the overhead rate for each cost pool. (Round overhead rate answers to 3 decimal places, eg. 15.215.) Fabricating Assembly Overhead cost assigned $ 243000 $ 201000 Overhead rate $ 1519 MH S 160.8 /setup e Textbook and Media Attempts: 2 of 3 used (c) READY e Textbook and Media Attempts: 2 of 3 u: (c) Calculate the unit costs of balzene and galvene using activity-based costing. (Round all rates and final answer decmial places, eg. 15.25.) Balzene Galvene Cost per unit $ $ e Textbook and Media Safor La Attempts: 0 of 3 used Submit Answer READY Type here to search O