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Smith-Phine, Inc. produces running shoes, (1) Standard and (2) ultra. During October, the company experienced above normal production. Specifically, 800 pairs of standard shoes were

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Smith-Phine, Inc. produces running shoes, (1) Standard and (2) ultra. During October, the company experienced above normal production. Specifically, 800 pairs of standard shoes were produced, and 200 pairs of ultra shoes were produced The overhead cost is estimated to be $134,250. A breakdown of the overhead costs reveals the following activities: TOTAL COST COST DRIVERS ACTIVITIES $ 52,500 Number of requisitions 1. Materials handling 41,250 Number of setups 2. Equipment setup 40,500 $134.250 Number of inspections 3. Inspections The cost analysts determined the following cost driver volumes for each product as follows STANDARD TOTAL ULTRA COST DRIVERS 3,600 2.400 2.250 1,500 900 750 2.100 1.500 1500 Number of requisitions Number of setups Number of inspections INSTRUCTIONS 1 Compute the overhead rate for each activity 2. Determine the amount of overhead costs that should be assigned to each product 3. Assume instead of ABC. the traditional method of overhead assionment used machine hours to assign overhead costs Total machine hours are approximately 1.200 hours where the production of standard shoes used 800 machine hours and the production of ultra shoes used 400 machine hours. Determine the amount of overhead cost that would be assigned to each of the two products 4. Compare and evaluate your answer in #2 with your answer in 3. Is one answer a more fair assignment and/or a more accurate assignment Save All Click Save and Submit to sqve and submit. Click Sae All Anscers to save all anseers 2. Equipment Number of inspections 3. Inspections 40,500 $ 134,250 The cost analysts determined the following cost driver volumes for each product as follows: TOTAL ULTRA COST DRIVERS STANDARD 2,100 1.500 1,500 3,600 2,400 2,250 1,500 900 750 Number of requisitions Number of setups Number of inspections INSTRUCTIONS: 1. Compute the overhead rate for each activity 2. Determine the amount of overhead costs that should be assigned to each product 3 Assume instead of ABC. the traditional method of overhead assignment used machine hours to assign overhead costs Total machine hours are approximately 1.200 hours where the production of standard shoes used 800 machine hours and the production of ultra shoes used 400 machine hours. Determine the amount of overhead cost that would be assigned to each of the two products 4. Compare and evaluate your answer in #2 with your answer in #3. Is one answer a more fair assignment and/or a more accurate assignment than the other? Explain in detail. QixY 3 (12pt) T TTArial Save and Submit to save and submit. Click Save All Ansueers to save all answers. Click

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