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Exercise 17-2 (Algo) Computing plantwide overhead rate LO P1 Hydro Sports budgets overhead cost of $855,000 for the year. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours per unit are 6 for the standard model and 12 for the deluxe model. The company budgets production of 190 units of the standard model and 190 units of the deluxe model for the year 1. Compute the total number of budgeted direct labor hours for the year. 2. Compute the plantside overhead rate using budgeted direct labor hours. 3. Compute overhead cost per unit for each model using the plantwide overhead rate. Actual direct labor hours per unit are 6 for the standard model and 12 for the deluxe model Complete this question by entering your answers in the tabs below. Required Remed 2 Required Compute the total number of budgeted direct labor hours for the year Model Number of Direct Labor Budgeted Direct Us Hours per Unit Labor Hours Der To Hydro Sports budgets overhead cost of $855,000 for the year. The company manufactures two types of jet skis: standard and deluxe. Budgeted direct labor hours per unit are 6 for the standard model and 12 for the deluxe model. The company budgets production of 190 units of the standard model and 190 units of the deluxe model for the year. 1. Compute the total number of budgeted direct labor hours for the year. 2. Compute the plantwide overhead rate using budgeted direct labor hours. 3. Compute overhead cost per unit for each model using the plantwide overhead rate. Actual direct labor hours per unit are 6 for the standard model and 12 for the deluxe model Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the plantwide overhead rate using budgeted direct labor hours. Required 1 Required 2 Required 3 Compute overhead cost per unit for each model using the plantwide overhead rate. Actual direct labor hours per unit ar model and 12 for the deluxe model. Standard Deluxe Plantwide Overhead Rate per direct labor hour per direct labor hour Hours per Unit direct labor hours direct labor hours Overhead Allocated per unit per unit Determine the overhead cost per unit for each part using the departmental rates. (Round "Overhead rate" and "Hours per unit" to 2 decimal places) Departmental Overhead Rate Hours per Unit Part 2 Molding Trimming Total Overhead cost per unit $ 0.00 0.00 Departmental Overhead Rate Hours per Unit Part X Molding Trimming Total Overhead cost per unit $ 0.00 0.00 Laval produces lighting fixtures, Budgeted Information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Assembly Overhead cost $1,260,000 $ 336,000 Direct labor hours 131,600 DLH 28,000 DLR Machine hours 90,000 72,500 MH Laval reports the following for one of its products, a desk lamp, Fabricating Department Number of Direct Labor Hours per Machine Hours per Direct Labor Hours per Machine Hours per Assembly Department Units Unit Unit Desk Lamp 6,000 4 per unit 3 per unit 20 per unit 0.4 MH per unit Required: 1. Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base, 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department 4. Determine the overhead cost per unit for the desktop using the departmental overhead rates, Unit Unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. Plantwide Overhead Rate Hours Used Overhead Cost per Unit Desk lamp Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. What is the departmental overhead rate for the Fabricating Department? What is the departmental overhead rate for the Assembly Department? Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Departmental Overhead Rate Hours per Unit Overhead Cost per Unit Department Fabricating Assembly Total Required A Required B Allocate overhead costs to a job that uses 28 machine hours and 23 direct labor hours. Activity Rate Allocated Cost Activity Cutting Assembly Total Activity Usage 28 machine hours 23 direct labor hours Required 1 Required 2 During January, Qinto received 680 calls on its deluxe model and 140 calls on its basic model. Allocate technical support costs to each model Allocate technical support costs to each model Activity Usage Activity Rate Allocated Cost Model Basic Deluxe Required 1 Required 2 Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each. (Round your final answers to 2 decimal places.) Show less a. Compute overhead activity rates Activity Activity Rate Machine setup per setup Parts handling per part Quality inspection per inspection b. Allocate overhead to Product A, B and compute overhead cost per unit Allocated Cost Activity Product A Product B Machine setup Parts handling Quality inspection Total allocated cost 0 $ Units produced Overhead cost per unit c. Product cost per unit using activity based costing Product Cost per Per Unit Unit Product Products $ 0 Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow Budgeted Activity Usage 7,600 240 840 480 Process Activity Budgeted cost Activity Cost Driver Assembly Machining $ 311,400 Machine hours (11) Setups 26,000 Setups $ 337,400 Finishing Inspecting $ 226,000 Inspections Support Purchasing $ 138,000 Purchase orders Additional production information concerning its two models follows. Units and Activities Model X Model z Units produced 1,800 3,600 Machine hours 2,400 5,200 Setups 80 160 Inspections 500 340 Purchase orders 320 160 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model X $ 400 145 135 Model z $ 380 110 155 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing compute the overhead cost per unit for each model 3. Compute the total product cost per unit for each model, 4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model compute the gross profit per unit (selling price per unit minus product cost per unit), Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Activity Budgeted Cost Budgeted Activity Usage Activity Rate Machining Setups Inspection Purchasing Houte Required 2 > Required 1 Required 2 Required 3 Required 4 Using activity based costing, compute the overhead cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Overhead cost per unit--Model X Activity Activity Usage Activity Rate Allocated Cost Machining Setups Inspection Purchasing Total allocated cost $ Units produced Overhead cost per unit 0 0 Activity Usage Activity Rate Allocated Cost Overhead cost per unit-Model Z Activity Machining Setups Inspection Purchasing Total allocated cost Units produced Overtvead cost per unit $ 0 Compute the total product cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Round your final answers to 2 decimal places.) Por Unit Direct Materials Direct Labor Overhead Product Cost per Unit Model X Modol Z Required 1 Required 2 Required 3 Required 4 For each model, compute the gross profit per unit (selling price per unit minus product cost per unit), (Round "Product cost per unit" and "Gross Profit" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Negative amounts should be indicated with a minus sign.) Per Unit Selling Price Product cost per unit Gross Profit Model X Model Z