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Check my work mode : This shows whet is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Kitchen Kings toledo plant mamutacturethree Procct nsel mot-tu product models are the Regufar (REG), the Advanced AD), and the Gourmet (GMT). Until recently, the plant used a ob-order product-costing system. with manufacturing overhead all mult-butnec cerarnc cookto plant's three applied on the basis of ditional costing system was based. Planned annual production Volume in units Production runs 2e cuns of 5e units runs of 125 units 2 points Direct material 9 setup) (not including per product unit by product line in a year Machine houns (H) Total machine hours consumed 48,0ae 7 MH 1, 000) is $12 per The annual budgeted overnead is s1224000, and the company's predetertmaned overhead rate is s2 per reported under the plants traditional costing system borhour The procust costs for the thtee product models as r are shown ini the following table Direct moterial Direct labor (not including set-up Kitchen King's pncing policy is to set a target price for each product equal to 130 percent of the full product cost Due to price competition from other appliance manufachirers REG uhits were selling at $525. and ADV units were selling for $628. These prices were somewhat below the firm's target prices. However these results were partially offset by greater-than-expected profits on the GMT product ine. Mnagement had raised the price on the GMT model to $800, which was higher than the original target price. Even at this pice, Kitchen King's customers did not seem to hesitate to place orders Moreover the company's competitors did not mount a challenge in the market fon the GMT product line Nevertheless. concern contihued to mount in Toledo about the difficulty in the REG a markets Ater al, these were the plamts preed and-butter products, with projected annual sales of 5,000 REG units nd ADV and 4.000 ADV of 7lNext O Type here to search Return to question 3 Kitchen King's director of cost management. Angela Ramirez had been thinking for some time about a refinement in the Toledo plant's product-costing system. Ramirez wondered if the traditional, volume-based system was providing management with accurate data about product costs. She had read about activity-based costing, and wondered if ABC would be an improvement to the plant's product-costing system. After some discussion, an ABC proposal was made to the company's top managemert. and approval was dbtained. The data collescted for the new ABC system is Part 1 of 5 displayed in the following table. 1.42 points Activity Cost Poo $ 318,500Machine Hours Cost Driver Product: Quantity for Activity Cost Dri Line Product Line REG ADV Machine related 50,000 48.e0e 17,G00 115,008 40 Total REG ADV Material handling 2,50Production Runs Total REG ADV 100 106 96 104 308 48 Purchasing 75,000 Purchase Orders Total REG ADV Gmr Total REG setup a5,000lProduction Runs 28 Inspectian 27500 Inapection 400 40e Total REG Shipping 66,0Shipments 208 Total REG Engineering 32,5eaEngineering Hours 250 200 20e Total RI 6S Facility 575,a0aMachine Hours REG 8,080 48,000 17,000 115 000 Total Graw O type here to search Ei e 4:08 PM 1/26/2019 ^ ) 3. Complete the table given below to calculate the new product cost for each product line under ABC. (Round your intermediate calculations and final answers to 2 decimal places.) Book REG ADV GMT Direct material Direct labor Total direct costs per unit Manufacturing overhead: Print Machine-related Material handling Purchasing Setup Inspection Shipping Engineering ferences Facility Total ABC overhead cost per unit Total product cost per unit Graw 5 6,7,1 of 7 Next > Type here to search ,A ^ 49) 1/26/201 4. Complete the table given below to compare the overhead cost, total product cost, and target price for each product line under the two alternative costing systems. (Round your intermediate calculations and finel answers to 2 decimel places.) Print ferences Reported unit overhead cost Traditional, volume-based costing system Activity-based costing system Reported unit product cost (direct material, direct labor and overhead) Traditional, volume-based costing system Activity-based costing system Sales price data: Original target price (Based on traditional, volume-based costing system) New target price (Based activity-based costing system) Actual cutrent solling price Mc Graw Hill 1/26/2019 Type here to search Total 115,000 5. Was each of Kitchen King's three product lines overcosted or undercosted? By how much per unte (Round your intermediate calculations and final answers to 2 decimal places.) Answer is not complete. REG Overcosted per unit per unit per unit GMT Undercostede Mc Graw