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 DataScientificBusinessUnits produced per year75,000750,000Prime costs$234,000$2,340,000Direct labor hours98,000980,000Machine hours48,300483,000Production runs100150Inspection hours2,0003,000Maintenance hours2,2509,000Department DataDepartment 1Department 2Direct labor hours:Scientific calculator74,10023,900Business calculator127,400852,600Total201,500876,500Machine hours:Scientific calculator25,00023,300Business calculator385,00098,000Total410,000121,300Overhead costs:Setup costs$230,500$230,500Inspection costs150,000150,000Power251,000138,000Maintenance216,000256,500Total$847,500$775,000

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 hourOverhead cost per unit:Scientific$fill in the blank 2

per unitBusiness$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 hourDepartment 2$fill in the blank 5

per direct labor hourOverhead cost per unit:Scientific$fill in the blank 6

per unitBusiness$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 hourDepartment 2$fill in the blank 9

per machine hourOverhead cost per unit:Scientific$fill in the blank 10

per unitBusiness$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 CostScientific$fill in the blank 12

per unitBusiness$fill in the blank 13

per unit