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Puget World, Inc, manufactures two models of television sets, the N 800 XL model and the N 500 model. Dota regarding the two products follow.
Puget World, Inc, manufactures two models of television sets, the N 800 XL model and the N 500 model. Dota regarding the two products follow. Direct Labor Annual Total Direct Hours per Unit Production Labor-Hours Model N 800 XL 3.0 2,500 units 7,500 Model N 500 1.0 11,000 units 11,020 18,500 Additional information about the company follows: Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $15 per hour c The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products, d. Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment Consequently, the company is considering the use of activity based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 380,000 175,000 925,000 $1,450,000 Activity Measure Number of setups Machinebours Direct labor-hours Mode NOX 160 17,500 Expected Activity Model N 500 220 . 11.00 Yotal 380 17,500 18,500 2 Assume that the company decides to use activity-based conting to sign manufacturing overhead cost to products Compute the activity rate for each activity cost pool 12. Determine the amount of overhead cost that would be assigned to each model using the activity based costing system b. Compute the unit product cost of each model Complete this question by entering your answers in the tabs below. Reg 2A1 Req2A2 Reg 28 Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Machine setup Special processing General factory per setup per MH per DH Reg 22 > Reg 21 RE2A2 Reg 28 Assume that the company decides to use activity-based costing to assignmanufacturing overhead cost to products, Determine the amount of overhead cost that would be assigned to each model using the activity-based costing system (round your intermediate calculations and final answers to 2 decimal places Model N100 XL Model 500 Overhead cont peront
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