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Pacifica Industrial Products Corporation makes two products. Product H and Product L. Product H is expected to 5ell35.000 unit5 next year and Product Lis expected to sell 7,000 units. A unit of elther product requires 0.7 direct labor-hours, The company's total manufacturing ovemead for the year is expected to be $2,499.000. Required: 1-a. The company currently applies manufacturing overhead to products using drect labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be appled to eoch product? 1.6. Compute the total amount of overisead cost that would be opplied to each product. 2 Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that alt of the manufacturing overhead be rreated os a product evel cost. The total manufacturing overhead would be divided in half between the two products, with $1,249,500 assigned to Product H and $1,249,500 assigned to Product L. If this suggestion/s followed, how much overhead cost per unit would be assigned to eoch product? Complete this question by entering your answers in the tabs below. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. if this method is followed, how much overhead cost per unit would be applied to each product? (Round vour answers to 2 decimal) Pacifica Industrial Products Corporation makes two products, Product H and Producr L Product H is expected to 5 ell 35,000 units next year and Product L is expected to sell 7,000 units. A unit of eather product requires 07 direct labor hours. The company's total manufacturing overhead for the year is expected to be $2,499,000 Required: 1.a. The company currently applies manufacturing overhead to products using direct labor hours os the allocotion base. If this method is followed, how much overbead cost per unit would be applied to each product? 1.b. Compute the total amount of overhead cost that would be applied to each product. 2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing ovemead be treated as a product level cost. The totot manufacturing overheod would be divided in half between the two products, with $1,249,500 ass igred to PcoductH and $1,249,500 assigned to Product L If this suggestion is followed, how much overhead cost per unit would be assigned to each product? Complete this question by entering your answers in the tabs below, Compute the total amount of ovechead cost that would be applied to each product. Pocifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 35,000 units next year and Product L is expected to sell 7,000 units. A unit of either product requires 0.7 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $2.499.000. Required: 1.0. The company currently applles manufacturing overhead to products using direct labor hours os the allocation bose. If this method is followed, how much overhead cost per unit would be applied to each product? 1-6. Compute the total amount of overhead cost that would be applied to each product 2 Management is considering on activity based cosing system and would like to know whot impoct this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $1,249,500 assigned to Product H. and $1,249,500 assigned to Product L If this suggestion is followed, how much overhead cost per unit would be assigned to each product? Complete this question by enterino your answers in the tabs below. Management is considering an activityzeaseu costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $1,249,500 assigned to Product H and $1,249,500 assioned to Product L. If this suggertion is followed, how much overhead cost per unit would be assigned to each product? (Round your ariswers to 2
