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PLEASE EXPLAIN IN DETAILS FOR A AND B Question 8 Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the
PLEASE EXPLAIN IN DETAILS FOR "A" AND "B"
Question 8 Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products Activity Pool Binding Printing Product design General Total overhead costs Department Costs Cost driver $245.160.00 Number of units 886,41525 Machine hours 203.490,00 Change orders 367.284.75 None $1.702.350.00 Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets 68.100 $4.00 $5.00 29,100 154.900 1.995 Books 17,025 $12.00 $10.00 14.550 116,175 3,990 Your answer has been saved. See score details after the due date. Determine the unit product cost for Tablets using the traditional costing system. (Round answer to 2 decimal places, eg. 1.64.) Unit product cost for Tables S 25.66 Attempts: 1 of 1 used Your answer has been saved. See score details after the due date. Determine the unit product cost for Tablets using the activity-based costing system. (Round answer to 2 decimal places.cg. 1.64.) Unit product cost for Tablets 20:31 Attempts: 1 of 1 used a) Direct materials + direct labor + overhead cost = unit product cost i) Overhead cost:(total/(direct labor hours tablets + books))* direct labor hours/ units 1) (1,702,350 / (29,100 + 14,550)) * 29,100 / 68,100 = 16.66 ii) 4.00 +5.00 + 16.66 = 25.66Step by Step Solution
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