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Private Corporation manufactures two types of transponders--no. 156 and no. 157-and applies manufacturing overhead to all units at the rate of $79.00 per machine hour

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Private Corporation manufactures two types of transponders--no. 156 and no. 157-and applies manufacturing overhead to all units at the rate of $79.00 per machine hour Production Information follows. No. 156 7,000 Anticipated volume (units) Direct material cost Direct labor cost $45 No. 157 16,500 $70 30 50 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. No. 156 No. 157 Total Setups 45 110 Machine hours worked 15,500 28.000 43,500 Outgoing shipments 125 85 210 65 The firm's total overhead of $3,436,500 is subdivided as follows, manufacturing setups. $265.000, machine processing $2655.000 and product shipping, $506,500 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. riconfarti itu.hacer retin romut the total ng nariini nina 156 Private Corporation manufactures two types of transponders-no. 156 and no. 157-and applies manufacturing overhead to all units at the rate of $79.00 per machine hour. Production information follows Anticipated volume (units) Direct material cost Direct labor cost NO. 156 7.000 $45 50 No. 157 16,500 $70 30 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 65 15,500 125 No. 157 45 28,000 85 Total 110 43,500 210 The firm's total overhead of $3,436,500 is subdivided os follows: manufacturing setups, $265.000 machine processing. $2,665,000 and product shipping, $506,500 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. netin mut the total net ner init nfnotn 150

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