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Please help with Question B and C. Thanks Baird Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs
Please help with Question B and C. Thanks
Baird Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Activities Batch Level $23,970 47 setups Unit Level $ 33,600 1,600 labor hrs. Cost Cost driver Product Level $ 12,000 Percentage of use Facility Level $150,000 10,000 units Production of 730 sets of cutting shears, one of the company's 20 products, took 290 labor hours and 5 setups and consumed 11 percent of the product-sustaining activities. Required a. Had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 730 units are produced. If direct product costs are $190 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A and B Required C Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? How much overhead is allocated to the cutting shears using activity-based costing? (Round intermediate calculations to 2 decimal places. Round your final answers to the nearest whole dollar amount.) a S 39,797 Allocated cost Allocated b. S 23,340 X cost Required A and B Required Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 730 units are produced. If direct product costs are $190 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (Round intermediate calculations and final answers to 2 decimal places.) Show less ABC Labor Hrs Allocated overhead Direct cost Total cost per unit Desired profit Sales price 0.00 0.00 S 0.00 0.00Step by Step Solution
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