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Product X200 X99 Direct Labor-Hours 0.3 DLHS per unit 0.5 DLH per unit Annual Production 20,000 units Total Direct Labor-Hours 6,000 DLHS 24,000 DLHS

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Product X200 X99 Direct Labor-Hours 0.3 DLHS per unit 0.5 DLH per unit Annual Production 20,000 units Total Direct Labor-Hours 6,000 DLHS 24,000 DLHS 48,000 units 30,000 DLHS Additional information about the company follows: a. Model X200 requires $43 in direct materials per unit, and model X99 requires $30. b. The direct labor workers are paid $10 per hour. c. The company has always used direct labor-hours as the allocation base for applying manufacturing overhead cost to products. d. Model X200 is more complex to manufacture than model X99 and requires special equipment. e. Because of the special work required in (d) above, the company is considering an activity-based absorption costing that applies manufacturing overhead cost to products using three activity cost pools: Estimated Total Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Cost X200 Direct labor-hours $ 188,500 353,100 600,000 116 1,070 Estimated Total Activity X99 174 Total 290 0 1,070 6,000 24,000 30,000 $ 1,141,600 Required: 1. Assume the company continues applying overhead costs to products using direct labor-hours. a. Compute the plantwide predetermined overhead rate. b. Compute each model's unit product cost. 2. Assume the company decides to apply overhead cost to products using activity-based absorption costing. a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost applied to each model. b. Compute each model's unit product cost. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Part 1 Req 2A Part 2 Req 2B Assume the company continues applying overhead costs to products using direct labor-hours. Compute each model's unit product cost. Note: Do not round "Predetermined overhead rate". Round other intermediate calculations and final answers to 2 decimal places. Model X200 X99 Unit product cost Show less

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