Product$-$Costing Accuracy, Plantwide and Departmental Rates, ABC

Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products:

Product$-$Related Data

Scientific Business

Units produced per year $77,000770,000$

Prime costs $$249,000$ $$2,490,000$

Direct labor hours $99,200992,000$

Machine hours $51,900519,000$

Production runs $100150$

Inspection hours $2,0003,000$

Maintenance hours $2,2509,000$

Department Data

Department $1$ Department $2$

Direct labor hours:

Scientific calculator $73,50025,700$

Business calculator $109,120882,880$

Total $182,620908,580$

Machine hours:

Scientific calculator $24,60027,300$

Business calculator $413,280105,720$

Total $437,880133,020$

Overhead costs:

Setup costs $$227,500$ $$227,500$

Inspection costs $175,000175,000$

Power $259,000142,000$

Maintenance $220,000207,500$

Total $$881,500$ $$752,000$

Required:

$1.$ Compute the overhead cost per unit for each product using a plantwide, unit$-$based rate using direct labor hours. Round your calculations and answers to the nearest cent.

Plantwide rate $

fill in the blank $1$

per direct labor hour

Overhead cost per unit:

Scientific $

fill in the blank $2$

per unit

Business $

fill in the blank $3$

per unit

$2.$ Compute the overhead cost per unit for each product using departmental rates. In calculating departmental rates, use machine hours for Department $1$ and direct labor hours for Department $2.$ Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required.

Departmental rates:

Department $1$ $

fill in the blank $4$

per machine hour

Department $2$ $

fill in the blank $5$

per direct labor hour

Overhead cost per unit:

Scientific $

fill in the blank $6$

per unit

Business $

fill in the blank $7$

per unit

Repeat using direct labor hours for Department $1$ and machine hours for Department $2.$ Round departmental rates and the overhead cost per unit to the nearest cent if rounding is required.

Departmental rates:

Department $1$ $

fill in the blank $8$

per direct labor hour

Department $2$ $

fill in the blank $9$

per machine hour

Overhead cost per unit:

Scientific $

fill in the blank $10$

per unit

Business $

fill in the blank $11$

per unit

$3.$ Compute the overhead cost per unit for each product using activity$-$based costing. Round your calculations and answers to the nearest cent.

Overhead Cost

Scientific $

fill in the blank $12$

per unit

Business $

fill in the blank $13$

per unit