Problem #4 - Chapter 5 ABC costing (34 points) NOTE - This problem is not related to #3. You must show all calculations and circle your answers Cogswell Cogs, Inc. estimates its overhead for the upcoming year to be $1,693,500 and has been using machine hours as its base to apply overhead and estimates total machine usage will be 112,000 hours and estimates direct labor hours will be 125,000 hours. Cogswell makes three different models of its product - Basic, Premium and Deluxe. The company anticipates making 10,000 units of Basic, 5,000 units of Premium and 1,000 units of Deluxe. The following information relates to Direct Material, Direct Labor and Overhead for each unit for each model- Deluxe Basic Premium Direct Material 5 pounds at $4 per pound 8 pounds at $4.20 per pound 10 pounds at $4.40 per pound Direct Labor 6.5 hours at $16 per hour 9 hours at $16 per hour 15 hours at $18 per hour Overhead 6 machine hours per unit 8 machine hours per unit 12 machine hours per unit 1. Calculate the pre-determined overhead rate using machine hours (round to the nearest 1/10th of a penny, 3 pts, show all calculations) 2. Calculate the per unit cost for each of the models (7 points, show all calculations) Basic Premium Deluxe Cost Pool Cost Driver Material handling number of deliveries Setup costs production runs Supervisors' salaries direct labor hours Utilities machine hours Inspection costs inspection hours Rent floor space, square feet Engineering engineering hours Costs Basic Premium Deluxe $36,000 50 25 15 $66,000 24 16 10 $550,000 55,000 44,000 30,000 $660,800 60,000 40,000 12,000 $48,000 2,000 1,000 600 $211,700 4,000 7,000 9,000 $121.000 2.000 3,000 5,000 $1,693,500 Total costs Using ABC costing, calculate the overhead for each cost pool in total dollars to be charged to each product, circle your answer. (24 points for the rest of this problem, show all calculations Premium Deluxe Costs Basic Material handling Setup costs Supervisors' salaries Utilities Inspection costs Rent Engineering Total Overhead Total Overhead per unit What is TOTAL COST per unit for each model using ABC? Basic - Premium - Deluxe