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Plantwide versus departmental Rates, Products, Costing and Accuracy: Activity Based Costing 7-54: Rasmey Company produces speakers (Model A and Model B). Both products pass through
Plantwide versus departmental Rates, Products, Costing and Accuracy: Activity Based Costing 7-54: Rasmey Company produces speakers (Model A and Model B). Both products pass through two departments. Model A's production is much more labor intensive than that of Model B. Model B is also the moe popular of the two speakers. The following data is gathered: Units produced per year Model:A 30,000 and ModelB:300,000 Prime costs ModelA: $100,000 modelb: 1,000,000 direct machine hours modela: 140,000 modelb: 300,000 machine hours modela: 20,000 modelb: 200,000 production runs modela: 40 modelb: 60 inspecion hours modela: 800 modelb: 1,200 maintenance hours modela: 10,000 modelb: 90,000 overhead cost setup cost $180,000 inspection cost $140,000 machining 160,000 maintenance 180,000 totaling 660,000 REQUIRED: 1.Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. Round 2 decimal places. 2. Compute overhead cost per unit for each product using ABC round 2 decimal places
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