Question 3 of 5 -/3 View Policies Current Attempt in Progress Flounder Delights manufactures a wide variety of holiday and seasonal decorative items. Flounder's activity based costing overhead rates are: Purchasing $386 per order Storing $2 per square foot days Machining $100 per machine hour $5 per direct labor hour Supervision The Snow Man project involved 3 purchase orders, 4600 square feet/day. 66 machine hours and 46 direct labor hours. The cost of directmaterials on the job was $19.600 and the direct laborrate is 531 per hour Determine the total cost of the Snow Man prolect Yotal cost 5 Question 4 of 5 -/4 Sheffield Electronics manufactures two ultra-high-definition television models the Royale, which sells for $1.480, and a new model, the Majestic which sells for $1.320. The production cost computed per unit under traditional costing for each model in 2022 was as follows Traditional Costing Royale Majestic Direct materials $ 650 $410 Direct labor ($20 per hour 100 Manufacturing overhead (5 42 383 per OLH) 254 212 Yotal per unit cost $1024 $722 120 In 2022. Sheffield manufactured 25000 units of the Royale and 10.000 units of the Majestic. The overhead rate of $42.383 per direct labor hour was determined by dividing total estimated manufacturing overhead of 5 8,476.600 by the total direct labor hours 1200.000 for the two models. Under traditional conting the gross proht on the models was Royale 545615 1.480 - 51024) and Majestic 598 (5 1.320 - 5 722) Because of this difference management is considering phasing out the Royale model and increasing the production of the Malistic oder Beforenizing its decision management Sheets controller to prepare alysis an activity based costinec The controller accumulate the following information about overhead for the warded December 2012 Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Coitre Activity Based Overhead Rate 5125600 40,500 Son Question 4 of 5 - 14 Before finalizing its decision, management asks Sheffield's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2022. Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate $ 31/order $1.258.600 Cost Drivers Number of orders Number of setups Machine hours Purchasing Machine setups 40.600 990.000 18.000 $ 55/Setup Machining 5.445.000 121,000 545/hour Quality control Number of inspections 783.000 29,000 $27/inspection The cost drivers used for each product were OS Cost Drivers Royale Majestic Total Purchase orders 12.000 23.800 10.600 Machines 6.000 12,000 18.000 Machine hours 75.000 6.000 121.000 Inspection 12000 17.000 29.000 Question 4 of 5 --74 Royale Majestic Total 17.000 23,600 40,600 Cost Drivers Purchase orders Machine setups Machine hours 6,000 12.000 18,000 75.000 46,000 121.000 Inspections 12.000 17.000 29.000 (a) Assign the total 2022 manufacturing overhead costs to the two products using activity-Based costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimo proces. c. 12.25) Royale Majestic Total costs 5 5 Costerunit $ $
