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PLEASE ANSWER QUESTIONS 1 AND 2! Ellix Company manufactures two models of ultra-high fidelity speakers, the X200 model and the X99 model Data regarding the
PLEASE ANSWER QUESTIONS 1 AND 2!
Ellix Company manufactures two models of ultra-high fidelity speakers, the X200 model and the X99 model Data regarding the two products follow: Annual Total Direct Product Direct Labor-Hours ProductionLabor-Hours 0.4 DLH per uni 23,000 units 9,200 DLHs 0.6 DLH pe unt 43,000 units 25,800 DLHs X200 X99 35,000 DLHs Additional information about the company follows a. Model X200 requires $35 in direct materials per unit, and model X99 requires $22 b. The direct labor rate is $30 per hour c. The company has always used direct labor-hours as the 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 Activi Estimated Total Cost X200 X99 Total Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours $ 205,900 116 174 290 960 3,150,000 9,200 25,800 35,000 355,200 960 $ 3,711,100 Required 1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products a. Compute the predetermined overhead rate. (Round "pre-determined overhead rate" to nearest dollar.) Predetermined overhead per DLH b. Compute the unit product cost of each model. (Round "pre-determined overhead rate" to nearest dollar and round other intermediate calculations and final answers to 2 decimal places.) Model X200 X99 Unit product costStep by Step Solution
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