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Required information fThe foii'owing information appi'ies to the questions o'r'spi'ayed bellow} Puget World, Incorporated. manufactures two models of television sets, the N 890 XL model
Required information fThe foii'owing information appi'ies to the questions o'r'spi'ayed bellow} Puget World, Incorporated. manufactures two models of television sets, the N 890 XL model and the N 500 model. Data regarding the two products follow: Direct Labor- Hours Total Direct per Unit Annual Production Labor-Hours Model N 396 XL 4.5 3,699 units 13,566 Model I'll 596 1.5 11,999 units 16, 5'99 39,966 Additional information about the company follows: a. Model N 809 XL requires $89 in direct materials per unit, and Model N 500 requires $30. b. The direct labor wage rate is $16 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 509 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: Estimated Activity Cost Pool Activity Measure Overhead Cost Machine setups Number of setups $ 399,666 Special processing Machine-hours 189,666 General factory Direct laborhours 1,989,666 $ 2,553,:aes Expected Activity Activity Measure Model N 866 XL Model H 569 Total Number of setups 95 165 266 Machinehours 18,969 6 18,666 Direct laborhours 13,599 16,596 39,966 Required: 1. Assume thatthe company continues to use direct labor-hours as the base for applying overhead cost to products. a. Compute the predetermined overhead rate. b. Compute the unit product cost of each model. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1 B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the predetermined overhead rate. [Round your answer to 2 decimal places.) Predetermined overhead rate - per DLH Hot] 13 ) Req 1A Req 1B Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products. Compute the unit product cost of each model. (Round your answers to 2 decimal places.) Model N 800 XL Model N 500 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. a{1)_ Compute the activity rate for each activity cost pool. a{2}i. 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 REC] 2A2 REE] 2E1 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.) Special processing -m General factory _ per DLH Req 2A2 ) Req 2A1 Req 2A2 Req 2B Assume that the company decides to use activity-based costing to assign manufacturing 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 N 800 XL Model N 500 Overhead cost per unit Req 2A1 Req 2A2 Req 2B Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. Compute the unit product cost of each model. (Round your intermediate calculations and final answers to 2 decimal places.) Model N 800 XL Model N 500 Unit product cost
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