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Private Corporation manufactures two types of transponders-no. 156 and no. 157and applies manufacturing overhead to all units at the rate of $88.00 per machine hour.

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Private Corporation manufactures two types of transponders-no. 156 and no. 157and applies manufacturing overhead to all units at the rate of $88.00 per machine hour. Production information follows No. 156 9,800 $ 59 120 No. 157 23,5ee Anticipated volume (units) Direct material cost Direct labor cost 44 The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours worked, and outgoing shipments, the activities' three respective cost drivers, follow. Setups Machine hours worked Outgoing shipments No. 156 79 17,800 139 No. 157 59 30,900 99 Total 138 48,700 238 The firm's total overhead of $4,285,600 is subdivided as follows: manufacturing setups, $279,000; machine processing, $3.460,200, and product shipping, $546,400, Required: A. Compute the pool rates that would be used for manufacturing setups, machine processing, and product shipping in an activity based costing system B. Assuming use of activity based costing, compute the unit overhead costs of product nos. 156 and 157 if the expected manufacturing volume is attained Required: A. Compute the pool rates that would be used for manufacturing setups, machine processing and product shipping in an activity- based costing system. B. Assuming use of activity-based costing, compute the unit overhead costs of product nos. 156 and 157 if the expected manufacturing volume is attained C. Assuming use of activity-based costing, compute the total cost per unit of product no. 156. D. If the company's selling price is based heavily on cost, would a switch to activity-based costing from the current traditional system result in a price increase or decrease for product no. 156? For all requirements, round intermediate calculations and final answers to the nearest whole dollar. per SU per MH per OS A Manufacturing setups Machine processing Product shipping . Overhead costs of product No. 156 No 157 C. Cost per unit of product no. 156 D. Product no 156

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