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Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. 1-b. Compute the unit product cost
Required: 1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products. 1-b. Compute the unit product cost for one unit of each model. 2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea. It came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed as follows: Expected Activity Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing number of tests) Machine related machine-hours) Estimated Overhead cost $ 20,000 10,000 210,000 360,000 $600,000 Plexible 100 60 900 1,500 Rigid 300 140 1,200 2,500 Total 400 200 2,100 4,000 Compute the activity rate for each of the activity cost pools. 3-a. Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year 3-b. Using activity-based costing, compute the unit product cost for one unit of each model. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Reg 3A Reg 3B Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year. Total Amount of Overhead Flexible Rigid aces Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Req Req 3B Using activity-based costing, determine the total amount of overhead that would be assigned to each model for the year Total Amount of Overhead Flexible Rigid es Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2 Req Rea 3B Using activity-based costing, compute the unit product cost for one unit of each model. (Round your answers to 2 decimal places.) Unit Product Cost Flexible Rigid
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