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Please help me to solve this exercise Many thanks Exercise 3) Activity-Based Costing cost system and overhead costs are currently allocated using a plant-wide overhead
Please help me to solve this exercise Many thanks Exercise 3) Activity-Based Costing cost system and overhead costs are currently allocated using a plant-wide overhead rate Outside cost consultants have recommended, however, that the Apricot Co produces only two products: a major computer part and cell phones. The company uses a normal based on direct labor hours. The company expects to produce 6,000 computer parts and 2,000 cell phones next year Each computer part requires one hour and a half of direct labor to produce and each cell phone requires one-half hour to produce The direct material and direct labor costs included in the two products are as follows: y use activity-based costing to charge overhea to products Item Direct Material (per unit) Direct Labor (per unit) Computer Part $30 Cell-Phone $18 S 5 $15 Estimated Total Factory Overhead Data for next year is summarized in the following table: Budgeted Overhead Dollars $120,000 $90,000 $180,000 S390,000 Estimated Volume Level Activity Production Setups Material Handling Packaging and Shipping Total Factory Overhead 20 setups 5,000 lbs. 6,000 boxes Based on an analysis of the three overhead activities, it is estimated that next year the two products would require these activities as follows: Cell Phones Overall Totals Activit Production Setups Material Handling Packaging and Shipping Computer Parts 5 setups 2,000 lbs 20 setups 3,000 lbs. 5,000 lbs. 4,500 boxes ,500 boxes 6,000 boxes 15 setups Required: a) Calculate the amount of Factory Overhead apportioned to each product using a plant-wide b) Calculate the activity cost rates for (a) setups, (b) material handling and (c) packaging and c) rate based on direct labor hours. shipping. Cost out the two products (on a per unit bases) using an activity-based costing system
Please help me to solve this exercise
Many thanks
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