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Question. Mda) Krypton Inc. manufachs iwo products, Vintex and Bromal. The company estimated it would imaS160,690 in manufachring overhead costs during the cment period Overhead
Question. Mda) Krypton Inc. manufachs iwo products, Vintex and Bromal. The company estimated it would imaS160,690 in manufachring overhead costs during the cment period Overhead cumenty is applied to the product on the basis of direct labour hour. Data concerning the cumnt period's operations appear below: Estimated Volume Direct labour hours per unit Direct labour cost per unit Direct matanal cost per unit Vintex 4,700 units 2.1 hours $33.60 $4.80 Bromal 3,300 units 1.6 hours $25.60 $12.70 The company is considering using an activity-based costing system to compute imit product costs instead of is traditional single plant-wide system based on direct labour hours. The activity- based eesting system would use three activity cost pools and drivers: Activity cost pool Material acquisition costs Machine costs General factory costs Driver Purchase orders Machine setups Direct labour hours Data relating to these activities for the current period are given below: Estimated Activity cost pool overhead costs Material acquisition costs $78.800 SI2.490 $69.100 Expected driver activity levels Vintex Bromal Total 920 30 9.820 $.230 15130 Required: a) Compute the predetermined overhead rate under the single plant-wide method, and determine the unit product cost of each product for the current year. b) Determine the unit product cost of uach product for the current period ung the activity based costing approudu e) Which method will probably provide a better representation of untust? bpk bueily, Question. Mda) Krypton Inc. manufachs iwo products, Vintex and Bromal. The company estimated it would imaS160,690 in manufachring overhead costs during the cment period Overhead cumenty is applied to the product on the basis of direct labour hour. Data concerning the cumnt period's operations appear below: Estimated Volume Direct labour hours per unit Direct labour cost per unit Direct matanal cost per unit Vintex 4,700 units 2.1 hours $33.60 $4.80 Bromal 3,300 units 1.6 hours $25.60 $12.70 The company is considering using an activity-based costing system to compute imit product costs instead of is traditional single plant-wide system based on direct labour hours. The activity- based eesting system would use three activity cost pools and drivers: Activity cost pool Material acquisition costs Machine costs General factory costs Driver Purchase orders Machine setups Direct labour hours Data relating to these activities for the current period are given below: Estimated Activity cost pool overhead costs Material acquisition costs $78.800 SI2.490 $69.100 Expected driver activity levels Vintex Bromal Total 920 30 9.820 $.230 15130 Required: a) Compute the predetermined overhead rate under the single plant-wide method, and determine the unit product cost of each product for the current year. b) Determine the unit product cost of uach product for the current period ung the activity based costing approudu e) Which method will probably provide a better representation of untust? bpk bueily
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