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please solve the overhead cost per unit and the unit product cost as intructed for a thumbs up Puget World, Incorporated, manufactures two models of
please solve the overhead cost per unit and the unit product cost as intructed for a thumbs up Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Direct Labor- Hours per Unit 4.0 1.0 Model N 800 XL Model N 500 Total Direct Annual Production Labor-Hours 5,000 units 20,000 14,000 units 14,000 34,000 Additional information about the company follows: a. Model N 800 XL requires $80 in direct materials per unit, and Model N 500 requires $40. b. The direct labor wage rate is $19 per hour. c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products. d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment Consequently, the company is considering the use of activity-based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 690,000 245,000 2, 193,000 $ 3,128,000 Activity Measure Number of setups Machine-hours Direct labor-hours Model N 800 XL 180 17,500 20,000 Expected Activity Model N 500 280 0 14,000 Total 460 17,500 34,000 Model N 800 XL Model N 500 Overhead cost per unit Model N 800 XL Model N 500 Unit product cost
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