Problem 4-12 Contrasting ABC and Conventional Product Cost [LO4-2, LO4-3, L04-4) Precision Manufacturing Inc. (PMI) makes two types of industrial component parts--the EX300 and the TX500. It annually produces 51,000 units of EX300 and 11,600 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 $357,325 6153,550 $510,675 Direct labor $111.000 $ 38,000 $149,000 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 Manufacturing (and Activity Measure) Overhead 300 TX500 Total Machining (machine-hours) $152,900 81,000 58,000 139,000 Setups (setup hours) 74,400 JO 210 240 Product-level (number of products) 76,660 1 1 2 General factory (direct labor dollars) 38,740 $111,000 $38,000 $149,000 Total manufacturing overhead coat $342,700 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. Total manufacturing overhead coat 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. 2-6. Using the activity rates, compute the unit product cost for each product Complete this question by entering your answers in the tabs below. Reg 11 Req 18 Reg 2A Reg 28 Compute the plantwide overhead rate that would be used in the company's conventional cost system. (Round your answer to 2 decimal places.) Predetermined overhead rato per DLS 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. Req1A Reg 10 Req 2A Reg 20 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 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 2-0. 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 Reg 1B Reg 2A Reg 28 Compute the activity rate for each activity cost pool. (Round your Machining and General factory activity rates to 2 decima places.) Activity Cost Pools Machining Setups Product-level General factory Activity Roto per MHR per setup hr per product por DLS Total man 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 14 Req 18 Reg 2A Reg 28 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
