Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please check if my answer is correct.Otherwise post the correct answer. CLICK HERE TO SAVE YOUR WORK 1 ADI uses a traditional approach to allocate
please check if my answer is correct.Otherwise post the correct answer.
CLICK HERE TO SAVE YOUR WORK 1 ADI uses a traditional approach to allocate overhead based on direct labour hours. The company produces an Analog and a Digital scale. In 2020, ADI expects to incur $330,000 of factory overhead. The following table provides additional information regarding the two scales 2 5 6 7 Direct materials cost per unit Direct labour cost per unit Total direct labour hours expected to be used Number of units expected to be produced Analog $7 S6 17,500 35,000 Dipital $13 $6 10,000 20,000 ADI wants to refine its costing wstem to be more competitive by introducing activity based costing. The following table summarizes the ABC information for 9 ADI: 10 11 Expected Activity 12 Expected Activity Cost Pool Activity measure Overhead 13 Cost Analor Digital Total 14 Setups Number of $16000 120 50 160 15 Material handling Quantity of matemalam 56,000 56,000 56,000 112.000 16 Eguiment operations Machine hour.MHO 2ERA 27.000 41.000 17 Total Sad 1 19 Required 20 Sheet New UCK HILOSAVL YOUR WORK B D 16 Equipment operations Machine-hours (MH) 258.000 16,000 27,000 43,000 17 Total $330.000 18 19 Required: 20 21 Part 1: Calculate the predetermined overhead rate based on direct labour hours and calculate the overhead cost per unit for each product. (3 marks) 23 24 25 Estimated factory overhead Estimated direct labour hours Predetermined overhead rate 5330,000 27.500 $12.00 26 27 20 Predetermined overhead rate Analog Digital $420,000.00 $200.000,00 25 Overhead cost per unit 12 Part 2 Calculate the overhead cost per unit for each product using activity based costing (7 marks) 14 35 36 so Shett CLICK HERE TO SAVE YOUR WORK E H 28 c D Predetermined overhead rate 29 $420,000.00 $240,000.00 30 Overhead cost per unit 31 32 Part 2: Calculate the overhead cost per unit for each product using activity based costing 7 marks) 33 34 35 36 37 18 39 Analog 40 Digital 41 42 Overhead cost per unit Sheet Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started