Siege Covporation manufactures a product avaliatre in both a delime and a regular model. The company has made the iegular model for years the dehuse model was introduced several years ago to capture a new segrsent of the maeket Since the introdixtion of the deluxe modet, ahe company's proliss hove steadily declined, and management has become concerned about the accuracy of its costing system. Sales of the delure model have been increasing rapidly. Overhead is applied to products on the bakis of diliect labour hourk. At the beginning of the current yeac, management estimated that \$2.044.400 in overhead costs would be incurred and the company would produce and sell 5.000 units of the deluxe modet and 32.540 units of the reqular model. The deluve model requires 2.4 hours of obrect labour time per unit, and the regular model requeres 12 hours Materials and labour costs follow. Required. 1. Compate the predetermaned overhead rate using direct labour-hours as the basis for aliocating overhead costs to products. Compute the unit product cost for one unit of each model. (Do not round interme diate calculations. Round your answers to 2. decimat pleces.) 2. Anintern suggested that the company use activity-based cosling to cost its products. A leam was formed to investigate this idea. and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activies follow: 2. An inteia sugbecbed that the compery use acthity based costing to cost is products. A team was formed to inveistigate this ites. andi it came back with the recoitimendation that four activity cost poots be used. These cost pools and their associated activitiee. follaw Compute the activity rate 0.0, predetermined overhead eate) for each of the acthity cost pocis. 2. Assume that actiaal activity o as expected for the year Using activity besed costing, do the folowing a. Determine the total amount of overfead that would be appled to each model for the year (Do not round intentinediole catcuiatione And round yaur final arswers to newrest whele deliar amount.) Chapter 5 Hownewolk Avogniment 1 10 = 3. Assume that achaal acticly is as especsed for the year Using actiofy based costre. do the folowing a. Deteimune tre 10 til ainount of oremead that would be appled to each model for the year too net reunal iariermedate caicuietione and round your finel anseers to nesrest whole dolior ameunt.) b. Coopene the unt preduct cout for one unt of cach model. (Do not round intermediate caiculations and round yeut antwers is 2. decimal placest
