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Question 1: Hollywood Squares Inc. manufactures two types of children's building blocks: wood and foam. The company has used a traditional overhead costing system in the past based on direct labor costs. The company has decided to explore an activity-based costing system. Two cost pools have been identified in their manufacturing process -machine setup and machining. Additional information is as follows: Wood Foam Direct materials per mit) 50.79 5125 Direct lahar costs per unit) 50. SOS Machine hours ay) L.000000 Setup hours annually) 100 400 Production in its (unmually. 225.000 75.000 Total estimated overhead costs are $270,000 Echakule le predeland' per unit for both wood and foam using the traditional method Wood Total Cost per units Foam Total Cost per units Round to two decimals Question 2 Hollywood Squares Inc. manufactures two types of children's building blocks: wood and foam. The company has used a traditional overhead costing system in the past based on direct labor costs. The company has decided to explore an activity-based costing system. Two cost pools have been identified in their manufacturing process -machine setup and machining. Additional information is as follows: Wood For Direct material costs per Minit) 50.75 1.25 Direct labor costruit $0,25 5050 Machine hours annually 1.000 1.000 Setup hours (antally) 100400 Production in units annually 225.000 75.000 Total estimated overhead costs are $270,000. Overhead costs attributed to the machine setup cost pool are $100,000 and $170,000 of overhead is attributed to the machining cost pool. Calubide the prodal ud per unit for both wood and foam using the ABC method. Wood Total Cost per units Foam Total Cost per units Round to two decimals Direct mail costs per S0.75 S1251 unit) Direct la casa unit) 50.25 So Machine heurs annully) 1.000 1.000 Setup hoonally 10000 Production in units annually 225.000 75.000 Total estimated overhead costs are $270,000 Cabaldelke produto per unit for both wood and foam using the traditional method. Wood Total Cost per units Foam Total Cost per units Round to two decimals Question 2: Hollywood Squares Inc. manufactures two types of children's building blocks: wood and foam. The company has used a traditional overhead costing system in the past based on direct labor costs. The company has decided to explore an activity-based costing system. Two cost pools have been identified in their manufacturing process -machine setup and machining. Additional information is as follows: Wood Faum Direct mail costs per unit 30.75 1.25 Direct laberists per unit) 50.25 So so Machine husamall 1.000 1.000 Setup hours away) 100 400 Production in units annually. 235.000 75.000 Total estimated overhead costs are $270,000. Overhead costs attributed to the machine setup cost pool are $100,000 and $170,000 of overhead is attributed to the machining cost pool. Caliulite le prededow per unit for both wood and foam using the ABC method. Wood Total Cost per units Foam Total Cost per units Round to two decimals Fill-in-the blank In multi-product manufacturing environments, it is typical for an ABC system to move overhead costs from the (higher lower)-volume product to the (higher/lower)-volume product