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Rekox Company manufactures two types of laser printers: monochrome and multifunction. Currently, manufacturing overhead is allocated based solely on the consumption of direct labor hours.
Rekox Company manufactures two types of laser printers: monochrome and multifunction. Currently, manufacturing overhead is allocated based solely on the consumption of direct labor hours. For the upcoming quarter, the company expects to produce 2, 100 units of monochrome printers and 1, 300 units of multifunction printers, and expects manufacturing overhead costs to be exist23,000. Each monochrome and multifunction laser printer requires 0.4 direct labor hours and 0.8 direct labor hours respectively. The following table outlines the selling price, materials and labor cost for each unit of monochrome and multifunction laser printers manufactured. The company is considering changing their current costing system to the ABC costing system. If they decide to use this method, they would separate the manufacturing support costs into three activities: handling purchase orders, inspecting and setting up production flow. The budgeted manufacturing overhead cost for purchase orders, inspections and product setups are exist6, 500, exist9, 200 and exist15,000 respectively. The following table indicates the cost allocation usage for each product. Do not enter dollar signs or commas in the input boxes. a) For each product, calculate the manufacturing cost per unit under the current costing system (using direct labor hours to allocate manufacturing overhead.) Round your answers to the nearest whole number Round your answer to 2 decimal places Cost per direct labor hour exist ______ For each product, calculate the manufacturing cost per unit under the ABC costing system. Round your answers to 2 decimal places. Manufacturing Overhead Cost per Order: exist _____ Manufacturing Overhead Cost per Inspection: exist ______ Manufacturing Overhead Cost per Setup: exist ______ Round your answers to the nearest whole number. Round the overhead per unit to 2 decimal places. Round your answers to 2 decimal places
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