Product$-$Costing Accuracy, Consumption Ratios

overhead activities, with the following costs:

The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the expected production.

Conceptual Connection: Do you think that the direct labor costs and direct materials costs are accurately traced to each briefcase? Explain.

Calculate the consumption ratios for each activity. Round your answers to one decimal place.

Elegant Fina

Machining

Setups

$3$a$.$ Calculate the overhead cost per unit for each briefcase by using a plantwide rate based on direct labor costs. Round to the nearest cent. $($Note: Do not round intermediate calculations.$)$

Elegant &

per briefcase

Fina $

per briefcase

$3$b$.$ Based on your calculations above which of the following statements is correct?

Conceptual Connection: Calculate the overhead cost per unit for each briefcase by using overhead rates based on machine hours and setup hours. Round your answers to the nearest cent.

Elegant $

per unit

Fina $,$&

per unit