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please do fast Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E cost) Power 15000 Maintenance cost
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Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E cost) Power 15000 Maintenance cost 7800 Ordering cost 6150 Set ups cost 4500 Cost Driver El activity) Number of setups 400 Number of orders 4,000 Machine Hours 5.000 Kilowatt hours 52000 The following is one of the jobs completed during the year JOBA JOBB Direct materials $1200 S1300 Hourly rate 25 30 Units completed 125 ISO DLH 140 70 Number of setups 1 6 Number of orders 20 9 Machine hours 250 100 Kilowatt hours 75 48 Actual overhead $1500 $950 The company's practical activity is 5000 machine hours REQUIRED Part 1 1. Calculate the predetermined rate for the plant using FBC based on machine hours for each job 2. Calculate total product cost using FBC based on Machine hours for cach job 3. Calculate the unit cost for cach Product 4. Is the overhead over-applied or under-applied? Part 2 5. Calculate the predetermined rate for the plant using ABC based on machine hours for cach job 6. Calculate product cost under ABC. 7. Calculate the unit cost for cach Product (ABC 8. Is the overhead over-applied or under-applied under ABC? 9. Compare there Step by Step Solution
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