Required information Tableau DA 4-3: Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Machine Hours by Department Department Finishing Department Finishing: $3,000,000 150,000 h... 125,000 h... 100,000 h... 75,000 hrs. Assembly Assembly 50,000 hrs Assembly 25,000 hrs 0 Finishing Direct Labor Hours Prev 1 2 of 2 # Finishing Machine Hours Next > Help quired information bleau DA 4-3: Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 om Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The mpany wants to assign budgeted overhead costs to its two different models to better understand the profitability of ch model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Machine Hours by Department Department 150,000 h... mishing Total: $8,000,000 125,000 h... 100,000 h... 75,000 hrs Assembly Assembly 50,000 hrs Assembly 25,000 hrs Finishing Finishing Department Assembly: $5,000,000 Direct Labor Hours Machine Hours < Prev 1 2 of 2 Next > Required information Tableau DA 4-3: Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Department Budgeted Direct Labor Hours & Machine Hours by Department Finishing 150,000 h... 125,000 h... 100,000 h... Direct Labor Hours Assembly: 100,000 hours Total: $8,000,000 75,000 hrs Assembly Assembly 50,000 hrs Assembly 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Required information Tableau DA 4-3: Mini-Case, Computing and assigning overhead costs using activity-based costing LO P3 Chrom Company manufactures two models, the XL and RD. It also has two departments, assembly and finishing. The company wants to assign budgeted overhead costs to its two different models to better understand the profitability of each model. The Tableau Dashboard provides data for our analysis. Budgeted Overhead Costs by Budgeted Direct Labor Hours & Machine Hours by Department Department Finishing Total: 150,000 h... 125,000 h... 100,000 h... 75,000 hrs Assembly Assembly $8,000,000 50,000 hrs Assembly Machine Hours Assembly: 70,000 hours 25,000 hrs Finishing Finishing Direct Labor Hours Machine Hours Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Activity Cost Pool Supervision: $2,000,000 Total: $8,000,000 Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Maintenance Activity Cost Pool Maintenance: $6,000,000 Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Activity Supervision: 125,000 direct labor hours Maintenance Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. +ableau Budgeted Overhead Costs by Cost Driver & Budgeted Usage Activity by Activity Supervision Maintenance Supervision Total: $8,000,000 Activity Maintenance Maintenance: 100,000 machine hours Note: Total overhead costs by department and total overhead costs by activity are equal. The costs are presented in two different ways here. +ableau pleau DA 4-3: Mini-Case, Computing overhead activity rates using ABC Tableau DA 4-3: Mini-Case, Computing overhead activity rates using ABC 1. Using activity based costing and data from the lower half of the dashboard, compute overhead activity rates for both maintenance and supervision. Activity cost pool Budgeted Cost Budgeted Activity Usage Activity Rate Maintenance Supervision 100,000 MH 125,000 DLH per MH per DLH Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 28 Required 3 Compute the overhead cost per unit of each model using ABC. Activity Maintenance Supervision Totals Units produced Overhead cost per unit p Save & Exit Submit XL RD Activity Usage Activity Rate Allocated cost Activity Usage Activity Rate Allocated cost MH DLH per MH per DLH MH DLH per MH per DLH Required 2A Required 28 > 0 < Prev 2 of 2 Next > Check my work Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. Plantwide OH OH Cost Per Model Activity Usage Rate Unit XL DLH RD DLH Tableau DA 4-3: Mini-Case, Assigning overhead costs and making decisions 2. Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. (a) Compute the overhead cost per unit of each model using ABC. (b) Alternatively, compute the overhead cost per unit of each model using a single plantwide overhead rate based on direct labor hours. 3. The company gives a bonus to production managers based on their ability to lower the cost of their assigned model. a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? Complete this question by entering your answers in the tabs below. Required 2A Required 2B Required 3 a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? a. Which overhead cost allocation method would the XL production manager prefer? b. Which overhead cost allocation method would the RD production manager prefer? < Required 2B Required 3>