Preview File Edit View Co Tools Window Help 8 a Fri Dec 25 10 40 PM - Screen Shot 2020-12-25 at 3,52.14 PM U Precision Manufacturing Inc. (PMI) makes two types of industrial component partsthe EX300 and the TX500. It annually produces 67,000 units of EX300 and 13,200 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: Direct materials Direct labor EX300 $ 373,325 $ 127,000 TX500 Total $ 169,550 $512,875 $ 46,000 $173,000 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 (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of producta) General factory (direct labor dollars) Total manufacturing overhead cost Manufacturing Overhead EX300 $195,600 97,000 225,600 110 156,620 1 79,580 $127,000 $657,400 TX500 66,000 370 1 $46,000 Total 163,000 XBO 2 $ 173,000 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. Reg 1A Req 1B Reg 2A Reg 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 Preview File Edit View Co Tools Window Help a 2 Fri Dec 25 10:44 PM D-Screen Shot 2020-12-25 at 6.34.02 AM a Search Total manufacturing overhead cost $657,400 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 2A Req 2B Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 deci places.) Activity Cost Pools Machining Setups Product-level General factory Activity Rate per MHR per setup hr. per product per DLS Preview File Edit View Co Tools Window Help 98 Fri Dec 25 10:45 PM Screen Shot 2020-12-25 at 6.34.10 AM a Search (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product-level (number of products) General factory (direct labor dollars) Total manufacturing overhead cost TX500 66,000 370 Overhead $195,600 225,600 156,620 79,580 $657,400 EX300 97,000 110 1 $ 127,000 Total 163,000 480 2 $173,000 $ 46,000 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 2A Req 2B Using the activity rates, compute the unit product cost for each product. (Round your intermediate calculations and final answers to 2 decimal places.) EX300 TX500 Unit product cost
