Perez Company produces mathematical and financial calculators and operates at capacity. Data related to the two products follows. (Click the icon to view the data.) Requirements 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product. How might Perez's managers use the new cost information from its activity-based costing system to better manage its business? Total manufacturing overhead costs are: Total Machining costs $ 360,000 Setup costs 108,000 Inspection costs 102,000 i Data Table Requirement 1. Choose a cost driver for each Mathematical Financial Begin by choosing a cost driver for each overnd Cost driver $ Activity Machining Set up Inspection Annual production in units Direct materials cost Direct manufacturing labor cost Direct manufacturing labor-hours Machine-hours Number of production runs Inspection hours 50,000 200,000 $ 75,000 $ 2,500 20,000 40 800 100.000 400.000 150,000 5.000 40,000 Choose from any list or enter any number in 400 Requirement 1. Choose a cost driver for each overhead cost pool and calculate the manufacturing overhead cost per unit for each product. Begin by choosing a cost driver for each overhead cost pool. Activity Cost driver Rate Machining Set up Inspection Notain the foreslatanlarlate the candlestad taman dat Determine the formula to calculate the overhead allocated to each product. = Overhead allocated to product Now calculate the total overhead allocated to each product and the overhead cost per unit. (Round your answer to the nearest cent.) Mathematical Financial Machining costs Setup costs Choose from any list or enter any number in the input fields and then continue to the next question. Machining costs Setup costs Inspection costs Total overhead costs Manufacturing overhead cost per unit Requirement 2. Compute the manufacturing cost per unit for each product. Determine the formula to calculate the direct costs per unit. = Direct cost per unit Now compute the manufacturing cost per unit for each product. Mathematical Financial Now compute the manufacturing cost per unit for each product. Mathematical Financial Manufacturing cost ner unit - - - - - - Requirement 3. How might Perez's managers use the new cost information from its activity-based costing system to better manage its business? (Select all that apply.) A. Managers can use this information for pricing and product-mix decisions, and for cost reduction and process-improvement decisions. B. Managers can use this information to improve advertising campaigns and their public image. C. Managers can use this information to devise employee compensation packages OD. Managers can use this information for design decisions, and to plan and manage activities
