Required information The following information applies to the questions displayed below.] Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow: Direct Labor Hours per Unit Model N 800 XL Model N 500 Annual Production 3,000 units 12,000 units Total Direct Labor-Hours 9.89 12,000 21,000 Additional information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $18 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 500 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: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 360,000 165,000 1.260.000 UUELO AL Model N See 300 LS 12,800 units 12,890 21,090 Additional information about the company follows: a. Model N 800 XL requires $75 in direct materials per unit, and Model N 500 requires $25. b. The direct labor wage rate is $18 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 500 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: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost 360,000 165,000 1,260,000 $ 1,785,000 Model N 800 XL Expected Activity Model N 500 200 Total 300 Activity Measure Number of setups Machine-hours Direct labor-hours 16,500 16,500 9,000 12,000 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). 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 Reg 2A2 Reg 28 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. Machine setup Special processing General factory per setup per MH per DLH Reg 2A2 > 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products at Compute the activity rate for each activity cost pool 2. 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. Red 2A1 Red 2A2 Red 28 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 Model N 800 XL Model N 500 Overhead cost per unit - Reg 2a1 Reg 28 > 2. Assume that the company decides to use activity-based costing to assign manufacturing overhead cost to products. all). Compute the activity rate for each activity cost pool. a(2). 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 Reg 2A2 Reg 28 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. Model N 800 XL Model N 500 Unit product cost Reg 212
