Precision Manufacturing Inc. (PMN makes two types of industrial component parts--the EX300 and the TX500. It annually produces 60,000 units of EX300 and 12,500 units of TX500: The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: EX300 TX500 Total Direct materials $366,325 $162,550 $528,875 Direct labor $120.000 $ 42,500 $162,500 ferences The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Activity Activity Cost Pool Manufacturing (and Activity Measure) Overhead EX380 TX500 Total Machining (machine-hours) $198,250 90,000 62,500 152,500 Setups (setup hours) 150,000 75 300 375 Product-level (number of products) 100,250 1 1 2 General factory (direct labor dollars) 60,125 $120,000 $42,500 $162,500 Total manufacturing overhead cost $508,625 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system 1-5. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2.h sinn the activity rates, compute the unit product cost for each product 375 2 75 1 $120,000 150, eee 100, 250 60,125 $508,625 300 1 $42,500 Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost $162,500 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-6. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 2A Req 2B Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round yo 2 decimal places.) Prodetermined overhead rato per DLS Rega Req 18 Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional cost system. 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req ZA Req 2B Using the plantwide rate, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Unit product cost Reg 1A Reg 2A Required: 1-a. Compute the plantwide overhead rate that would be used in the company's con 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. k ces Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the activity rate for each activity cost pool. (Round your Machining and Gene places.) Activity Cost Pools Machining Setups Product-level Activity Rate per MHR per setup hr. per product per DL$ General factory 75 1 $120,000 150,000 100,250 60,125 $508,625 300 1 $42,500 Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost Required: 1-a. Compute the plantwide overhead rate that would be used in the company's conventional 1-b. Using the plantwide rate, compute the unit product cost for each product. 2-a. Compute the activity rate for each activity cost pool. 2-b. Using the activity rates, compute the unit product cost for each product. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Req 2B Using the activity rates, compute the unit product cost for each product. (Round your intermedia answers to 2 decimal places.) EX300 TX500 Unit product cost
