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 $243,000 $2,430,000 98,400 984,000 47,800 478,000 100 150 2,000 3,000 9,000 Department Data Department 1 Department 2 Production runs Inspection hours Maintenance hours 2,250 Direct labor hours: Scientific calculator Business calculator 74,300 118,080 192,380 24,100 865,920 890,020 Total Machine hours: Scientific calculator 24,300 Business calculator 374,220 398,520 23,500 103.780 127,280 Total Overhead costs: Setup costs Inspection costs Power $221,500 170,000 241,000 218,000 $221,500 170,000 141,000 220,750 $753,250 Maintenance Total $850,500 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 1.48 per direct labor hour POSU04 $78,234 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 1.48 per direct labor hour Overhead cost per unit: Scientific 1.88 per unit Business 1.88 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 2.13 per machine hour Department 2 0.84 per direct labor hour Overhead cost per unit: Scientific 0.96 per unit Business 2.01 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 4.41 per direct labor hour Department 2 6.70 X per machine hour Overhead cost per unit: Scientific 6.69 X per unit Business 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 per unit Business 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 2.13 per machine hour Department 2 0.84 per direct labor hour Overhead cost per unit: Scientific 0.96 per unit Business 2.01 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 4.41 per direct labor hour Department 2 6.70 X per machine hour Overhead cost per unit: Scientific 6.69 X per unit Business 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 per unit Business per unit Feedback Check My Work 1. Plantwide OH rate is determined by taking the whole expected annual OH = driver in this case, the total direct labor hours). Apply Overhead to each Product and calculate Unit cost. 2. For each activity: Expected cost = activity capacity for driver = OH for each activity. Apply OH rate to individual activity for each product. Then repeat following instructions. 3. Predetermined OH rate = Budgeted annual overhead = Budgeted annual driver level. Applied OH = Overhead rate x Actual driver usage. Unit Cost = (Prime cost + OH Cost) - Total Units