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H M 2 Score: 0 AWN ALT-ACTIVITY-BASED-COSTING 5 6 Select Exercise (1 only) 1 7 8 9 Crandall Manufacturing manufactures two furnace filters--the Basic Filter and the Super Filter The company budgeted its Factory Overhead for the year at $239,000. The company plans to produce 2,000 units of the Basic Filter and 2,000 units of the Super Filter. 10 11 FO Per Unit Basic FO Per Unit Super 12 FO Per Unit--Traditional 0 a. If each unit produced requires one direct labor hour, how much overhead would be assigned to each unit of Basic and each unit of Super? Hint: Total Overhead/(Total Units of Basic + Super) 0 13 14 15 16 17 The company studied its Factory Overhead activities and determined that there were four activities that relate to incurring overhead costs. The four activities and their estimated costs are shown below: Cost Per Occurrence 0 0 18 19 20 21 22 23 24 Activity Cost Activity Base $44,000 Setups $13,500 Purchase Orders $97,500 Design Changes $84,000 Moves $239,000 Total Occurrences of Activity 400 900 1,500 700 Activities Machine Setup/Maintenance Purchasing Process Engineering Materials Flow Total Overhead Budget Occurrences for Occurrences for Super FO Allocated to FO Allocated to Basic Product Line Product Line Basic Super 110 290 140 760 300 1200 200 500 Factory Overhead Assigned to Product Line $0 $0 0 0 0 0 0 0 0 0 25 Units of Each Product Produced 0 0 0 0 Factory Overhead Per Unit--ABC 26 27 28 29 30 31 32 33 Compare the Factory Overhead Per Unit under the traditional overhead allocation method (cells 112 and J12) with the allocation of overhead using ABC, in cells 128 and J28. The difference is dramatic