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: PLEASE SOLVE WRONG ONES
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 Units produced per year Prime costs Direct labor hours Machine hours Scientific Business 77,000 770,000 $233,000 $2,330,000 100,000 1,000,000 48,300 483,000 100 150 2,000 3,000 2,250 9,000 Department Data Department 1 Department 2 Production runs Inspection hours Maintenance hours Direct labor hours: Scientific calculator Business calculator Total Machine hours: Scientific calculator Business calculator 77,800 130,000 207,800 22,200 870.000 892,200 22,900 384,720 407,620 25,400 98,280 123,680 Total $225,500 Overhead costs: Setup costs Inspection costs Power 160,000 $225,500 160,000 256,000 197,000 $838,500 170,000 Maintenance 253,000 $808,500 Total 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 $ 1.5 per direct labor hour Overhead cost per unit: Scientific $ $ 1.94 1.94 per unit per unit Business 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 $ $ 2.06 0.906 per machine hour per direct labor hour Department 2 Overhead cost per unit: Scientific $ 1.33 X per unit Business 1.83 x 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 per direct labor hour $ $ 4.04 6.54 Department 2 per machine hour Overhead cost per unit: Scientific $ 0.96 x per unit Business $ 0.8085 x 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. Scientific Overhead Cost 4 X per unit 1.8 X per unit A Business
